This collaboration ensures first-of-their-kind consistent cannabinoid compositions for 575 DEA-licensed cannabis medical research institutions developing cures for PTSD, pain management, anxiety conditions and more
Vancouver, British Columbia and Rehovot, Israel–(Newsfile Corp. – November 16, 2022) – BioHarvest Sciences (CSE: BHSC) (OTCQB: CNVCF) (FSE: 8MV), a leading biotech company focused on plant bio-cells growth for the nutraceutical and the medicinal cannabis markets, today announced the signing of a binding Letter of Intent (LOI) with Royal Emerald Pharmaceuticals (REP), one of only seven Drug Enforcement Administration (DEA) bulk manufacturing registration holders permitted to grow marijuana in the United States for drug related studies approved by the US Food and Drug Administration. This follows BioHarvest’s October 25th announcement that it could produce unique compositions based on a CBD hemp plant that dramatically increase cannabinoid concentrations (by weight) versus the original plant.
The 3-year initial term (with extension provisions) exclusive arrangement allows the supply of BioHarvest cannabis products for research purposes to pharmaceutical companies, research institutions and other DEA registered entities in the United States federally, and opens the door to advance cannabis research initiatives for drug development through cannabinoid compositions not found in nature. Under the multi-year deal, BioHarvest will be REP’s exclusive provider of cannabis that is produced from non-traditional cultivation methods for scientific, medical and research purposes across the DEA-regulated U.S. market. 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 15th.
Cannabis-based medicines could be a boon to pharmaceutical companies that are threatened today by the legalization of cannabis. A number of studies have demonstrated a reduction in prescription drug use in Medicaid and Medicare populations directly resulting from the legalization of cannabis. Together, REP and BHSC can offer pharmaceutical companies consistent medical-grade cannabis at highly attractive manufacturing costs with signature patentable compositions tailored for addressing specific medical indications.