Delta 9 Enters Licensing Agreement with Nanosphere Health Sciences
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES/
WINNIPEG, July 31, 2018 /CNW/ - DELTA 9 CANNABIS INC. (TSXV: NINE) ("Delta 9" or the "Company") is pleased to announce it has signed memorandum of understanding (the "MOU") with Nanosphere Health Sciences Inc. (CSE: NSHS) ("Nanosphere"). The MOU provides that Delta 9 and Nanosphere intend to negotiate and enter into a master agreement (the "Agreement") pursuant to which Nanosphere will grant a master license for Nanosphere's patented technology to Delta 9 for all of Canada. Delta 9 may also sub-license the technology to other licensed producers of cannabis under the Access to Cannabis for Medical Purposes Regulations (the "ACMPR").
Nanosphere is a nano-biotechnology company focused on providing next generation delivery of nutritional elements and medications. The company's patented NanoSphere Delivery System™ platform technology addresses the problems of low bioavailability and excessive dosage amounts of a wide range of bioactive compounds, including cannabinoids.
The NanoSphere Delivery System™ provides more bioavailability in comparison to other methods of delivery by transporting essential ingredients directly to the bloodstream and cells. Nanosphere's cannabis brand, Evolve Formulas, currently has products on sale in over 200 dispensaries across Colorado and has signed licensing agreements to bring products to California and Arizona in the coming months. It also holds the patent for delivery of cannabis via phospholipid nanoparticles, as well as a master patent covering its core technology.
"We are very excited to reach this agreement with Nanosphere," said Delta 9 CEO John Arbuthnot. "We believe Nanosphere has developed on of the world's most advanced delivery system for cannabinoids. We believe this partnership will revolutionize the medical use of cannabis in Canada and around the world, and that it also has important applications in the recreational market."
Nanosphere has developed a delivery system that shrinks active drug ingredients and encapsulates them in phospholipid nanoparticles, allowing the agents, including cannabis, to pass through skin or mucous membrane and go straight into the bloodstream. This process allows for a significant increase in the bioavailability of the drug, and also allows for extremely precise dosage of any drug, including cannabis. Nanosphere products can be applied as a transdermal viscous gel that absorbs into the skin; as an intranasal product for fast-acting effects; or as an intraoral product which is absorbed through the mucous membrane into the bloodstream.
Robert Sutton, Chairman and CEO of Nanosphere, says the agreement marks a great stride forward for his company. "With this agreement we have a trusted and experienced partner in the only G7 nation that has legalized cannabis for both medical and recreational use," Sutton said. "This allows Nanosphere's technology to be subjected to clinical trials and to be appropriately distributed to both patients and to recreational users of cannabis. We hope through our work to eliminate the need for patients to be essentially "smoking their medicine", and to give physicians a new and important tool to treat conditions that respond to cannabinoids."
The MOU provides that Delta 9 and Nanosphere will each receive 50 per cent of the net revenue from sales of Nanosphere products in Canada if the Agreement is entered into. Delta 9 will have the right to sub-contract distribution to third-party license holders in Canada where the opportunity exists. Under those circumstances, Delta 9 would receive a portion of that sub-licensee's net profit, and remit 50 per cent of the net revenue to Nanosphere.
The initial term of the Agreement is intended to be 36 months following the date of the first commercial sale of licensed products pursuant to the Agreement. The Agreement is intended to be renewed by mutual agreement of the parties. Also, if the Agreement is entered into, Delta 9 is bound to apply to Health Canada for authorization to distribute Nanosphere products. The parties intend that the MOU will be replaced by the Agreement within 60 days, upon completion of due diligence by both parties.
About Delta 9 Cannabis Inc.
Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical marijuana pursuant to the ACMPR and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9's shares trade on the TSX Venture Exchange under the symbol "NINE".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future business plans and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to: (i) the entering into of the Agreement, the terms of the Agreement and the granting of the license for Nanosphere's products to Delta 9; (ii) the development of Nanosphere's products; and (iii) sublicensing of Nanosphere's products by Delta 9. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including that Delta 9's currently contemplated expansion and development plans may cease or otherwise change, Delta 9's production of cannabis may be lower than expected, Delta 9 may not obtain the required approvals from Health Canada, demand for Delta 9's products may be lower than anticipated, Delta 9's cost to produce its grow pods may be higher than expected and all other risk factors set forth in the annual information form of Delta 9 dated May 31, 2018 which has been filed on SEDAR. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
SOURCE Delta 9 Cannabis Inc.