Newstrike Brands announced an agreement with the Neal Brothers company to create a joint venture for the development of cannabis edibles.
Newstrike Brands (TSXV:HIP) announced an agreement with the Neal Brothers company to create a joint venture for the development of cannabis edibles.
As quoted in the press release:
The joint venture partners will conceive and develop innovative edible cannabis products at Newstrike’s fully-licensed Niagara operations, where an in-house research and development facility is being constructed. Product development and future product brand names will be based on consumer data and insights.
Terms of Agreement
Pursuant to the Joint Venture Agreement, Newstrike and Neal Brothers have incorporated a joint venture entity and have agreed on terms relating to the management and control of the specialty food products company (the “Joint Venture“). The Company and Neal Brothers will contribute proportional capital in the Joint Venture in exchange for a 60 [percent] and a 40 [percent] interest in the Joint Venture, respectively. The Joint Venture will be involved in the procuring, manufacturing, distributing, marketing and selling of certain co-branded specialty food products which will be infused, derived or otherwise include cannabis.
The Company has also entered into an agreement to acquire a minority interest in Neal Brothers, pursuant to a share purchase agreement (the “SPA” and, together with the Joint Venture Agreement, the “Agreements“). As part of the agreement, Peter and Chris Neal will also provide advisory services to Newstrike with respect to the business of Newstrike.