On Aug. 15, 2018, Phivida Holdings Inc. (CSE: VIDA) (OTC: PHVAF) and WeedMD Inc. (TSXV: WMD) (OTC: WDDMF) (FSE: 4WE) announced the signing of a final definitive joint venture agreement to develop and operate Cannabis Beverages Inc. ("CanBev") at WeedMD's state-of-the-art greenhouse facility in Strathroy, Ontario.
Under the terms of the agreement, both companies will be strategic partners in the development of CanBev. The joint venture will be structured as a jointly-owned company with a dedicated board of directors and operational management team. Phivida and WeedMD will retain 50% each of the Class A shares. Phivida and WeedMD have agreed to fund capital requirements of CanBev equally, and on a pro-rata basis, from their respective treasuries, beginning with initial shareholder advances of $375,000 each.
CanBev plans to manufacture, market, and distribute cannabinoid infused products for use initially into the medical market as well as for the recreational Canadian markets, and then for use internationally, where such products are permitted. CanBev has no plans to sell any cannabis-infused products in the US or any other market unless or until it is legally permissible to do so at all government levels.
Phivida, based in Vancouver, British Columbia, is a manufacturer of cannabinoid infused foods, beverages and clinical products.
Peter Simeon of Gowling WLG advised Phivida with respect to the negotiation of this joint venture agreement.