Canada's WeedMD Inc. and Phivida Holdings Inc. agreed to form a joint venture focused on cannabis-infused beverages.
The new company, Cannabis Beverages Inc., will operate from WeedMD's Strathroy, Ontario, greenhouse and will be manufacturing, marketing and distributing the products to Canada's medical and future adult-use cannabis markets.
Financial terms of the agreement, which remains subject to TSX Venture Exchange approval, were not disclosed.
WeedMD will be the joint venture's exclusive cannabis supplier and distributor, while Phivida manages product innovation, formulation, branding, and research and development. Phivida also agreed to sublicense its encapsulation technologies to Cannabis Beverages.
