Mountain Valley MD Holdings Inc (CSE:MVMD, OTCQX:MVMDF) said it has entered into a letter of intent (LOI) to complete a licensing agreement with Red White & Bloom Brands Inc (CSE:RWB, OTCQX:RWBYF) (RWB), a publicly-traded multi-state cannabis operator and house of premium brands that are available across the cannabis market in the US.
The two companies expect to complete a product development and commercial licensing agreement before the end of October 2021, setting out the terms under which Mountain Valley will develop one or more formulas using its Quicksome technology and novel cannabinoid solubilization technique to be applied by RWB to various cannabis product applications.
RWB would have an exclusive license initially in Florida, Michigan and California to manufacture and distribute its cannabis products in exchange for payments, including research and development fees and royalties.
READ: Mountain Valley MD Holdings says its Quicksome technology could change vaccine landscape after cold chain tests
“We look forward to a great partnership with Mountain Valley MD as we leverage their technology in support of our strategy to bring premium, leading, and disruptive cannabis products to the marketplace,” said RWB chairman and CEO Brad Rogers in a statement.
“Red White & Bloom has a very aggressive growth strategy for key markets in the United States and beyond, led by our commitment to offer high quality, innovative brands in the cannabis space,” he added.
Through its research and development work, Mountain Valley has worked initially on a proprietary solubilization technique that was applied to both tetrahydrocannabinol (THC) and cannabidiol (CBD) molecules. The solubilized cannabinoids were then applied to a unique Quicksome THC-based sleep formulation created for RWB, which is the initial formula to be developed by Mountain Valley under the LOI.
Dennis Hancock, president and CEO of Mountain Valley commented: “It is an honour to work with Brad Rogers and his team at Red White & Bloom given their impressive visionary work across the US cannabis landscape. Brad’s demonstrated track record of building tremendously successful and profitable businesses in this high-growth economic sector, and his initial vision to disrupt the medical sleep space in key US markets is a perfect bullseye as a starting place for our Quicksome technology.”
The company said it is currently preparing a patent for submission to the US Patent Trademark Office to protect its cannabinoid solubilization work, which it believes will be a cornerstone for many unique product formulations in the cannabis marketplace.
Mountain Valley MD is building a world-class biotech and life sciences company organization centered around the implementation of its patented Quicksome oral drug formulation and delivery technologies and its Quicksol solubilization technology for macrocyclic lactones, to innovate industry-leading products that are sought out globally.
Contact the author at stephen.gunnion@proactiveinvestors.com