Emerald Health Therapeutics (TSXV:EMH) announced a term sheet with Factors R&D Technology (FTI), a division of Factors Group of Nutritional Companies.
As quoted in the press release:
In this exclusive arrangement, FTI will provide to Emerald pharmaceutical-grade, industrial-scale manufacturing capacity as well as expertise in GMP-level extraction, softgel production, and packaging focused on the rapidly emerging market opportunities for medicinal cannabis in Canada and internationally. This collaboration leverages the Factors Group’s decades of experience in product development, formulation and innovation.
Factors Group is Canada’s largest nutritional supplement marketer and manufacturer and has over 1 million square feet of production facilities, R&D, and quality control laboratories and distribution centres. Factors Group has established deep roots and relationships in Canada and worldwide in the nutrition industry. Factors Group is unique in its vertically-integrated farm-to-retail supply chain abilities. FTI markets and sells its products under multiple brands.
Through this strategic alliance, FTI will initially provide Emerald with access to a facility with operating extraction infrastructure capable of processing up to 1 million kg of biomass annually and softgel production capacity of up to 600 million capsules per year. FTI will also provide technology transfer of its extraction methods and production protocols to allow Emerald to establish a future production and manufacturing facility closer to its cultivation facilities. Emerald has agreed to pay an initial C$5 million fee to FTI to cover the costs of completing the unique extraction methods for Emerald, carrying out renovations necessary to comply with the Access to Cannabis for Medical Purposes Regulation (“ACMPR”), and the tech transfer.