Willow Biosciences (TSX: WLLW) this morning announced its first multi-year supply agreement. The company is set to provide Cellular Goods PLC with its synthesized cannabigerol, or CBG, for use in cannabinoid-based skin products that are launching this fall in the United Kingdom.
The arrangement is expected to see the first shipment of synthetic CBG occur in July. Financial details of the transaction however were not released.
The announcement follows the news in May that the European Commission added CBG to the list of approved cosmetic ingredients, indicating that compound is safe for use in personal care and cosmetic products. As a result, CBG is now eligible to be used in such products across the EU with permission, enabling Willow’s synthesized product to become an ideal core ingredient within the evolving regulatory landscape.
“We are very excited to announce our first commercial supply agreement for CBG. In just over two years we have gone from proof of concept in the lab to commercial scale up and sales of our first cannabinoid which will be slated for use in a consumer product. Cellular Goods are at the forefront, developing premium consumer cannabinoid products in the United Kingdom and we are thrilled to be supplying them with our ultra-pure, biosynthetically made CBG.”
Trevor Peters, CEO of Willow Biosciences
Willow Biosciences last traded at $1.23 on the TSX.
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