Ionic Brands (CSE: IONC) announced this morning that it had signed a Heads of Agreement with Lifespot Health Limited (ASX: LSH) related to Lifespot’s vaporizer and software technologies. The firm currently develops bluetooth enabled vaporizers for the medical cannabis sector.
Ionic Brands will have the exclusive rights to the product for Canada, the United Kingdom, and the United States, for which Ionic intends to bring the product to recreational consumers. Thanks to the tech nature of the product, the firm is also able to monitor consumer habits through a platform known as Bluetooth Bodytel. This data can then be used to Ionic’s advantage by understanding specific details about consumer habits.
Smartphone Bluetooth technology is the future of cannabis delivery and dosing. The Company is ecstatic to offer consumers advanced delivery technology that, before this agreement, was only available to medical patients. Ionic’s launch and distribution of the Slim-line Vape is expected to start in Q3 2019 in Washington, Oregon, Nevada and California. The Slim-line Vape is the first Bluetooth enabled vaporizer and platform designed specifically for the use of cannabis. Our devices will allow for individual controlled dosing, with maximum safety, and the ability to track and measure progress, including through the use of an innovative fingerprint system.
John Gorst, Chairman and CEO of Ionic Brands
Labelled as a smart device, users of the vaporizers can use features of the technology to monitor and track health conditions. Such data was previously only available to medical users of cannabis, but thanks to the joint venture will now be available for recreational users as well.
It is expected that a joint venture will be formed between Ionic Brands and Lifespot Health within the next 60 days, which will also include a distribution agreement. The JV is also to include continued research and development of the product, as well as potential market expansion should the need arise. The agreement will be for an initial twelve month term.
An initial purchase order for vaporizers was placed by Ionic Brands, with delivery to Ionic’s distribution network is expected to commence in the third quarter of 2019.
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