Algae Dynamics signed a memorandum of understanding with licensed producer Bonify, in order to supply raw cannabis plant material for oil sale and research.
Algae Dynamics (OTCQB:ADYNF) signed a memorandum of understanding with licensed producer Bonify, in order to supply raw cannabis plant material for oil sale and research.
As quoted in the press release:
Bonify is a Licensed Producer, pursuant to the Access to Cannabis for Medical Purposes Regulations in Canada with the capability to grow multiple strains of cannabis in its state of the art 320,000 square foot facility. It is anticipated that this MOU will lead to definitive service and supply agreements to be negotiated in the near future.
Under the terms of the MOU, raw cannabis plant material will be shipped to ARA – Avanti Rx Analytics Inc. (“ARA”), a company with oil extraction capability with whom the Company has an agreement to test, formulate, manufacture and sell products under the current and/or future medical and recreational cannabis regulations, through subsidiary ADC Biomedical Corp (“BIO”), which is jointly owned by the Algae Dynamics and ARA.
The agreements with Bonify and ARA will help ensure a supply source for cannabis oils to be provided to the University of Waterloo and the University of Western Ontario, pursuant to the Sponsored Research Agreements ADC has in place with the two universities, as previously announced. In addition, the agreements put in place a near-term pathway to revenues by arranging product for export and/or sale to other Licensed Producers. Under the terms of the MOU, Bonify receives a right of first refusal option on cannabis oils processed from plant material supplied to BIO by Bonify.