Aurora Cannabis (TSX:ACB) has reportedly entered into a licensing arrangement with 22nd Century Group (NASDAQ: XXII) and Cronos Group (TSX: CRON). The arrangement will see the licensing of certain IP related to biosynthesis to that of Cronos.
The licensing deal is said to assist in the advance of R&D for the biosynthesis of certain cannabinoids. The IP is currently held in jointly between 22nd Century Group and Aurora Cannabis, with the intellectual property originating from early work conducted by a former Chief Science Officer of Aurora, which pertains to the discovery of key genes in the cannabinoid biosynthesis pathway.
With Aurora and 22nd Century sharing the global IP rights for the commercialization of what are deemed to be “key aspects of cannabinoid biosynthesis in plants and micro-organisms,” Cronos was effectively required to go through them in order to commercialize the biosynthesis of certain compounds from the plant. The duo note that they are “working closely to enforce their IP against infringing parties,” suggesting that they strong armed Cronos into such a licensing arrangement.
Cronos for their part commented that the IP “provides [them] with a component of the process that could allow for increased speed and efficiency in the development and commercialization of cultured cannabinoids.”
Financial aspects of the licensing deal were not provided by the company.
Cronos Group last traded at $5.23 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
