Heritage Cannabis Holdings Corp. (CSE:CANN) (OTCQX:HERTF) (FRA:2UE) announced Tuesday that its subsidiary CannaCure Corp has entered into a binding letter of intent with Entourage Participações SA for a three-year extraction and finished product supply agreement for the distribution of pharmaceutical products in Brazil.
Under the terms of the agreement, Heritage said it will supply to Entourage Phytolab, hemp-derived CBD dominant extract, cannabis-derived THC dominant extract, and hemp-derived CBD 25 milligram (mg) softgels and cannabis-derived THC dominant 2.5 and 5.0 mg softgels.
CannaCure will provide cannabis and hemp products to be used strictly for pharmaceutical products that comply with regulations issued by the Brazil Health Authority (Anvisa), which include GMP certification and GMP compliant products. CannaCure is currently in the process of obtaining GMP certification.
CannaCure also will supply initial products for Entourage Phytolab’s formulation and research and development purposes by February 2021, with commercial orders to be delivered following CannaCure receiving EU GMP certification estimated in the latter half of 2021. CannaCure and Entourage Phytolab also have established minimum order quantities.
“Following on our recent announcement of a bulk CBD product supply agreement in Brazil, we are pleased to be further expanding our reach beyond Canada and the U.S. with our full-spectrum, high-quality extractions and medical softgel capsules,” said Clint Sharples, CEO of Heritage, in a statement.
“The Brazilian market for pharmaceutical cannabis and hemp products is in a high growth phase and the Agreement with Entourage Phytolab will facilitate Heritage’s growth in 2021.”
Caio Santos Abreu, CEO of Entourage Phytolab, added: “Entourage Phytolab started its activities in 2015 and is the pioneer in the research and development of CBD and THC based medicines in Brazil, one of the most promising markets for medical cannabis. The long-term partnership with Cannacure will allow us to develop a new generation of cannabis-based drugs in the country, with more efficient and more accessible treatments for millions of patients."
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