Mountain Valley MD Holdings Inc (CSE:MVMD, OTCQX:MVMDF). said it has forged a product development and commercial licensing agreement with Red White & Bloom Brands Inc (CSE:RWB, OTCQX:RWBYF)., one of the top three multi-state cannabis operators active in the US legal cannabis and hemp sector.
The Toronto-based company said the agreement establishes the terms on which Mountain Valley will develop and license formulas using its Quicksome technology and novel cannabinoid solubilization techniques to be applied by Red White and Bloom to various cannabis product applications.
“The agreement grants Red White and Bloom an exclusive five-year license in Florida, Michigan, and California to manufacture and distribute its cannabis products in exchange for the payment of product fees and ongoing sales royalties,” said the company.
READ: Mountain Valley MD enters into a letter of intent to complete a licensing agreement with Red White & Bloom
“Our partnership with Red White & Bloom illustrates how Mountain Valley’s technology can support product innovation objectives for our key partners across a variety of market verticals,” Mountain Valley CEO Dennis Hancock said in a statement. “Providing our global partners with product efficacy advantages through our technology licensing strategy is core to business scale objectives.”
Mountain Valley said its team has been “working closely” with Red White & Bloom Brands to apply proprietary formulations across a number of branded medical and recreational product lines. Mountain Valley’s Quicksome sublingual applications include a proprietary THC-based sleep formulation created for Red White & Bloom. The company said this is likely to be the initial product Red White & Bloom will launch in the large US medical sleep market.
“Leveraging this innovative technology to provide unique cannabinoid product formulations is part of Red White & Bloom’s strategy to bring premium, leading, and disruptive cannabis products to the marketplace,” said Red White & Bloom Chairman and CEO Brad Rogers.
“We believe this novel sublingual delivery technology when compared to numerous orally consumed products in the cannabis space, enables us to pursue market applications where the precision of cannabinoid delivery is preferred,” he added.
Mountain Valley is currently finalizing a patent for submission to the United States Patent Trademark Office (USPTO) to protect its cannabinoid solubilization work, which it believes will be a cornerstone for many unique product formulations in the cannabis marketplace.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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