In a press release on Wednesday, August 15, 2018, WeedMD Inc. (OTC:WDDMF) and Phivida Holdings Inc. (OTC:PHVAF) have announced their finalization of their joint venture agreement to form Cannabis Beverages Inc, in Strathroy, Ontario.
Currently, PHVAF is up 6.8% on the day, and WDDMF is up 2.4% on the day.
Cannabis Beverages Inc. aims to get a slice of the current market share in Canada’s newly legalized recreational market. As their name indicates, they plan to “manufacture, market, and distribute cannabinoid infused products” for the medical and recreational Canadian market.
Cannabis Beverages Inc. will operate as a “jointly-owned company with a dedicated board of directors and operational management team” with Class A shares split down the middle between both companies. Funding of capital is set to be split equally between the two companies, with “initial shareholder advances of $375,000 each.” Additionally, CanBev will operate in one of WeedMD’s current greenhouses.
Both players already have experience in the market, and it seems this joint venture aims towards utilizing the best of both companies.
WeedMD Inc. is a licensed producer and distributor of medical cannabis and oils in Ontario, Canada. Currently, they operate a 26,000 sq. ft. indoor operation as well as a 610,000 sq. ft. “under glass” operation. In addition to their massive cultivation sites, WeedMD Inc. also has established “strategic relationships with established cannabis brands.”
Phivida Holdings Inc. already has a bit of skin in the infused product market, as they currently manufacture CBD based foods, beverages, and health products. This could prove effective when coupled with WeedMD Inc.’s already established cultivation operation.