BioHarvest Sciences Inc has signed a binding letter of intent (LOI) to supply Royal Emerald Pharmaceuticals with unique compositions of cannabis in an effort to develop cures PTSD, pain management, anxiety conditions and more.
Royal Emerald is one of seven Drug Enforcement Administration (DEA) bulk manufacturing registration holders permitted to grow marijuana in the US for drug-related studies approved by the US Food and Drug Administration.
The LOI (a three-year term with extension provisions) allows REP and BHSC to offer pharmaceutical companies consistent medical-grade cannabis at highly attractive manufacturing costs with signature patentable compositions tailored for addressing specific medical indications, including with cannabinoid compositions not found in nature.
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"We're extremely proud to partner with Royal Emerald to pair our breakthrough technology with their mission to revolutionize the cannabis medical research ecosystem by introducing unique and patentable cannabis compositions that are non-addictive and effectively treat a myriad of issues currently ailing our global communities," BioHarvest CEO Ilan Sobel said in a statement.
"Imagine what can be accomplished if researchers and the medical community at large are assured of batch-to-batch consistency and the ability to fine-tune the cannabis-based therapy to specific medical indications. That is truly revolutionary."
As part of the LOI, REP has participated with $1 million in BioHarvest's convertible loan investment instrument that closed its second tranche on November 15, the company said.
"I have unprecedented confidence in BioHarvest's platform technology and their unique cannabis compositions especially after visiting their R&D and manufacturing facilities in Israel," said Royal Emerald CEO Douglas Rosenberg.
"Cannabis-derived drugs are at the precipice of a tremendous opportunity right now as traditional pharmaceutical markets transition in search of innovation and technological advancements that are utilizing cannabis to deliver better solutions.”
BioHarvest utilizes a patented technology in which vital plant cells are grown in bioreactors. This gives the company the ability to produce medicinal grade cannabis with consistent compositions by increasing, controlling and fine-tuning the concentrations of different major and minor cannabinoids.
This specificity could help researchers potentially develop previously unattainable cures for major health challenges such as ADHD, pain management, sleep disorders and anxiety, the company said.
BioHarvest will be holding an investor webinar to discuss the LOI at 2 pm ET on Wednesday, led by the CEOs of both companies. Interested parties can register here.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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