The original deal announced back in January 2018 was a 50/50 JV venture between CGB's subsidiary VitaCann and CannTab and was going to be marketed under CannTab Australia. CGB would look into a GMP facility to manufacture the tablets here with an initial USD$1ML payment paid upfront by CGB.
Material Terms of the VitaCann-Canntab Joint Venture
1. The parties have signed a 50/50 joint venture (JV) agreement for the JV to exclusively manufacture, distribute and sell tablets containing Canntab’s proprietary technology and formulation in Australia, and to obtain the approval for such activities. VitaCann retains the right of first refusal for distribution of the product throughout Asia.
2. VitaCann will be responsible for the first USD$1,000,000 of the JV’s expenditure in Australia, following which expenses will be split 50/50 between the parties.
3. The Joint Venture will be operated under the name Canntab Australia.
4. The Joint Venture shall be owned equally by Canntab and Vitacann and each of them shall be entitled to one half of all income and profits earned by the Joint Venture
MANUFACTURING CHANGED TO IMPORTING
From my understanding, of reading the latest Report, CGB is now importing the tablets straight from Canada, once the Canadian permit is approved. They have placed an order for 6 SKU's and 2 are for 'over the counter' products NOW submitted to the TGA for approval. The changes from the initial deal would seem to indicate that CGB has initially been spared the manufacturing and production costs and also, I would dare say, the US$1ML upfront payment. It would also appear that CGB has paid for the first SKU order.
For shareholders, I think this will be of a greater benefit as we don't yet know the full extent (Retail Sales) and will not leave the company as exposed to the ongoing costs from full production runs and products sitting in warehouses.
"Following an extensive research and production period, Cann Global will this quarter launch its medical cannabis tablets in Australia in joint venture with its partner Canadian listed Canntab Therapeutics Limited (Canntab). An initial product order has been placed for six hard pill cannabinoid formulations which will initially be available from pharmacies through the Special Access Scheme B and Authorised Prescriber Schemes. Canntab are awaiting issuance of their export licences from Health Canada to complete the order."
"Cann Global is pleased to confirm the import permit has been received and an initial order for these products has been made in order to release the products into the Australian market for the first time. Cann Global is importing 6 products out of the Canntab range for distribution to the Australian market. The range CGB is importing contains two THC products, two CBD only and two THC/CBD blends. "
"The initial order has been placed and via the facilitation agreement with Medcan, Cann Global will have access to an existing network of approved freight partners allowing Australia wide logistics, access to various networks of prescribing doctors and pharmacies Australia-wide and an online purchasing portal allowing seamless transactions for pharmacies."
"The TGA has announced 1 June 2021 as the proposed implementation date."
