News Americas, NEW YORK, NY, Fri. Nov. 16, 2018: A Canadian company looking to become a leading supplier to the cannabis beverage and edibles market has signed a deal to establish a joint venture with the Jamaican-owned Global Canna Labs Limited, described as the Caribbean’s largest medical cannabis producer.
Sproutly, a Vancouver-based company, has signed a letter of intent (LOI) to establish a JV in January that will focus on developing, producing, distributing, marketing and selling cannabis-infused beverages, edibles and topical products derived from its licensed technology.
The plan is that products will be sold in Jamaica and elsewhere in the Caribbean, with potential expansion into European countries that permit importing cannabis products from Jamaica.
Expected to be structured as a newly formed, jointly owned company with its own Board of Directors, Sproutly and Global Canna Labs will each have a 50 percent ownership interest in the joint venture.
Specifically, Global Canna Labs will be responsible for cannabis biomass production and procurement, as well as day-to-day operations while Sproutly will provide access to the APP Technology, supplying reagents and beverage/product formulation capabilities for products, a company statement said.
The partnership will allow “Sproutly to expand its business outside of Canada with a leading, low-cost cannabis cultivator in Jamaica that has proven distribution across the Caribbean and soon to be European Union,” Keith Dolo, Sproutly’s CEO and director said in the company’s press release. “This partnership will enable Sproutly to diversify its product portfolio and accelerate its global distribution network from a low-cost regulated jurisdiction.”
“We have explored a number of options regarding extraction and cannabis technology solutions for beverage and derivative products—APP Technology is, in our view, the superior choice for beverage formulations,” Paul Glavine, CEO of Global Canna Labs, added. “With our current supply and expansion plans to over 1 million square feet of cultivation, we see this partnership with Sproutly as a step towards utilization of our large-scale production towards a finished-product strategy.”
Global Canna Labs currently has 31,000 square feet of greenhouses, with an additional 27,000 square feet of expansion planned. The company is strategically located in Montego Bay Jamaica.
Sproutly Canada’s focus “is to execute on partnerships with local and globally established consumer brands to leverage their existing customer bases, further expand brand loyalty, assist with marketing and support distribution networks.”
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