United Cannabis (OTCQB:CNAB) reached an understanding with Herbal Biotech to create a new joint venture to support access to medical cannabis in Puerto Rico.
As quoted in the press release:
NEWCO will be equally owned by the two companies and established according to the laws of the Commonwealth of Puerto Rico.
According to the terms of the MOU, the Company will make available to NEWCO its proprietary cannabis brands, products and expertise, Prana formulations, delivery methods, software and professional network, sufficient to launch complete cannabis based business (grow, processing/manufacturing, retail and marketing for cannabis and/or hemp) for the Commonwealth of Puerto Rico; and Herbal Biotech will invest and/or make available capital, services and equipment to support and develop the operation pursuant to a business plan as agreed upon by both parties.
United Cannabis’ Chief Executive Officer, Earnest Blackmon, commented on the announcement, “Puerto Rico represents a substantial opportunity within the cannabis market, and we have been working to establish United Cannabis as a leader in that market. Patients in Puerto Rico will not be allowed to smoke medical marijuana, but can use other delivery methods, such as oral drops, pills, topical creams and salves, and our proprietary Prana line fully complies with these requirements. Cesar’s general expertise in the sector, as well as his contacts and financial resources within the Puerto Rican community, will enable us to expedite our plans to establish a comprehensive operation that will support our efforts in research, product development, production and distribution.”