Vancouver-based Next Green Wave said in a press release that the deal will allow the rapid production of its proprietary cannabis for the California market.
READ: Next Green Wave announces management changes and completion of construction at California cannabis facility
The company added that under an optimization phase, Intrexon will calibrate its technology to Next Green Wave's cannabis cultivar. Then, in a production phase, Next Green Wave may use the technology in the production of cannabis plantlets and the sale of plantlets to producers in California.
Under the deal, Intrexon will be entitled to royalties on Next Green Wave's own plantlet use, and the parties will share the revenue from third-party sales.
Intrexon's Botticelli platform is an advanced tissue culture technology designed to enable the efficient propagation of plants while maintaining genetic purity and product performance.
In the US, according to Next Green Wave, legal cannabis revenue is projected to exceed US$23 billion by 2022, with California representing about a third of that market.
"Intrexon's next-generation tissue culture approach will enable high-volume propagation of cannabis varietals, ensuring product integrity and consistent performance to offer to our customers," Mike Jennings, chief operations officer and head of research and innovation at Next Green Wave, said in a statement.
Shares of Next Green Wave fetched C$0.58 in Monday’s Canadian trading while Intrexon traded at $7.86 on the Nasdaq market.
Earlier this week, Next Green Wave said its executive chairman, Leigh Hughes, will take on the additional role of CEO as part of management changes.
Contact Dennis Fitzgerald at [email protected]