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LiveWell Canada signed a binding term sheet for a supply agreement with Tilray with hemp-derived CBD isolate in North America.
LiveWell Canada (CSE:LVWL) signed a binding term sheet for a supply agreement with Tilray (NASDAQ:TLRY) with hemp-derived cannabidiol (CBD) isolate in North America.
As quoted in the press release:
Under the terms of the agreement, and subject to the governing laws of the local jurisdictions (possession, sale and distribution), LiveWell will supply Tilray a minimum of 150 kilograms per month of wholesale CBD isolate cultivated and processed from hemp commencing in February 2019, through to July 2019. The amount then increases to a minimum of 300 kilograms/month for the remainder of the contract, until December 2019. Tilray has the option to increase the amount of CBD supply purchased to 500 kilograms/month, and there is an additional 12-month renewable option.
The deal follows the ending of hemp prohibition in the United States. On December 12, 2018, the US Agricultural Improvement Act of 2018, also known as the 2018 Farm Bill, was passed by U.S. Congress. The 2018 Farm Bill legalizes hemp and removes it from the Controlled Substances Act (CSA). CBD and other cannabinoid products extracted from hemp are also removed from the CSA. The bill must still be signed by President Trump, who has signalled support.
“We are pleased to have a strong partner such as Tilray in this emerging market,” said David Rendimonti, President and CEO of LiveWell Canada. “With the legal barriers lifting, we believe the market for hemp CBD could exceed all forecasts because of the huge shift to self-directed care and wellness among consumers.”
Click here to read the full press release.
Source: www.newswire.ca
