The Vancouver-based company signed a licensing and royalty agreement with Phenome One Corporation, a private genetic and seed preservation company with over 350 cultivars and access to around 1,700 unique genetics in its seed bank.
Under the terms of the deal, Mota has the right to propagate, cultivate, harvest and process at least 10 selected cultivars from Phenome’s genetic library and to sell anything it produces from the selections.
The agreement also grants unlimited access to the intellectual property and catalogue of Norstar Nutrients, a wellness company that offers blends of macro and micro-nutrients formulated for essential oils.
Mota may also tap into Phenome’s farming intellectual property, the company said in a statement. Phenome’s unique CBD strains have profiles ranging from 1:1 up to 150:1 CBD.
"We are excited to have finalized a licensing agreement with Phenome, as it gives us access to a significant genetic cannabis library, with some unique CBD strains having profiles of up to 150:1,” Mota’s CEO Joel Shacker said in a statement.
The transaction sees Mota issuing 1 million shares to Phenome once the firm completes seed registration in Colombia. It will also make a monthly royalty payment to Phenome of 5% of gross sales of any product produced from Phenome’s genetics.
Mota will also issue 1 million shares to Phenome if it is acquired by a third party or there is a material breach in the licensing agreement, it said in a statement.
The cannabis company also said it has terminated the previously announced acquisition of Tropical Verde Coast Ltd with no liabilities.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas