Thoughtful Brands Inc (CSE:TBI) (OTCQB:PEMTF) (FRA:1WZ1) announced Tuesday the formation of its joint venture with Franchise Cannabis Corp to sell and market Franchise-manufactured CBD, hemp and cosmetic products in the EU, Switzerland, Norway and the UK.
The company said both parties will share equal ownership in the joint venture. Franchise will manage procurement and fulfillment of customer orders from its European manufacturing facilities. Thoughtful Brands will provide marketing and eCommerce operations infrastructure in the JV territory.
Franchise is a leading European-focused cannabis and pharmaceutical distribution company based in Germany with two Good Distribution Practices (GDP) certified distribution facilities, exporting to over 18 countries and currently serving a network of over 1,500 pharmacies within Germany for medical cannabis sales.
READ: Thoughtful Brands sees 2Q revenue rise by 68% driven by its Nature's Exclusive CBD brand, expanding customer base
"The Thoughtful Brands agreement with Franchise ensures we are in a strong position to continue our European expansion," said Thoughtful Brands CEO Ryan Dean Hoggan in a statement.
"Our marketing expertise coupled with Franchise's procurement and distribution facilities will allow us to grow our customer base and generate significant sales with good margins. This joint venture also enables Thoughtful Brands to duplicate the model that has made us so successful in the United States."
According to the agreement, Franchise has agreed to make a $500,000 equity investment into Thoughtful Brands through a private placement of $0.20 units, which will consist of one common share and one warrant. Each warrant entitles the holder to purchase one additional share for $0.28 per warrant share for a period of 24 months from their date of issue.
Thoughtful Brands said it will then make a $350,000 equity investment into the JV, which will be used to develop business operations, including the initial funds to launch Franchise products in Europe using the company's advanced eCommerce capabilities. The units will be subject to a four-month-and-one-day statutory hold period.
Thoughtful Brands, the renamed Mota Ventures, is a vertically integrated CBD and psychedelic medicine company, with operations in North America and South America, as well as Europe.
The Vancouver-based company runs the popular Nature’s Exclusive brand that includes CBD oil drops, CBD gummies, CBD pain relief cream, CDB skin serum and CBD coffee. It also owns the popular Sativida brand.
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