Delivra Health Brands Inc. (TSX-V:DHB, OTCQB:DHBUF, FRA:3F0) said its wholly owned subsidiary, LivCorp, had entered into a licensing agreement with Peak Processing Solutions to manufacture, distribute and sell its LivRelief Infused topical products in Canada.
The agreement will run for an initial five-year term and automatically renew for up to three additional three-year periods, the company said.
The partnership is aimed at expanding the reach of Delivra Health’s LivRelief Infused brand, which focuses on topical products containing cannabinoids such as CBD and THC.
Delivra CEO Gord Davey said the deal would strengthen the company’s position in the Canadian market and broaden its distribution capabilities through Peak’s manufacturing platform.
“We expect our partnership with Peak to realize benefits well beyond Delivra's existing processing and distribution channels,” Davey told investors.
“Peak's deep expertise in consumer-packaged goods makes them a natural fit to accelerate the growth and reach of the LivRelief Infused brand."
Peak CEO Barry Katzman said the collaboration would combine Delivra’s product innovation with Peak’s operational capabilities to drive growth in the infused topicals segment.
The companies plan to offer three product formats under the LivRelief Infused line: a CBD-only topical with 500 mg of CBD, a balanced formulation containing 250 mg each of THC and CBD, and an extra-strength cream with 1,200 mg of CBD.
Separately, Delivra Health said its board had approved the grant of 440,000 stock options to directors, officers, employees and consultants under its equity incentive plan.
The options are exercisable at C$0.14 per share over a five-year period and will vest in equal tranches over three years, subject to regulatory approvals.