USA – Cannabinoid and hemp extract company, Cannabis Global has signed a definitive five-year agreement with licensed California cannabis operator, Magnolia Extracts for the production of cannabis edibles and beverages.
Under the terms of the agreement, Cannabis Global will provide access to its trade secrets and patent pending technologies for chemical-free cannabis and hemp infusions in the production of tetrahydrocannabinol (THC) containing edibles and beverages.
The CEO of Cannabis Global, Arman Tabatabaei, said that the deal represents an enormous escalation in terms of the company’s positioning in the California cannabis edibles and beverages marketplace.
“We will be working closely with Magnolia and look forward to a rapid path to market for these innovative products,” Arman added.
“We have strong reason to believe we will see a relatively quick expansion in distribution footprint given the prepotency of demand we are seeing among potential distribution partners already.”
Arman further revealed that Magnolia recently modified its production site to meet Cannabis Global’s specifications and is now complete.
“We are looking forward to moving out of our initial stage of development and into full-scale production. This Agreement is a game-changing development with strong tangible implications for our performance this year,” the CEO added.
With the deal, both companies are expected to benefit from the booming cannabis edibles and beverages, which according to cannabis research firm, ArcView, will hit US$4.1 billion annually within the U.S. by next year.
ArcView says that the sub-sector is the fastest growing area of the overall cannabis business sector.
With the recent surge in cannabis sales related to the COVID-19 outbreak, cannabis marketers are also seeing a significant increase in demand for edible products.
Cannabis Global management notes that this business expansion is separate and distinct from the company’s other product initiatives already underway.
The company plans to continue with its hemp extract technologies and directly manufactured products in the areas of alcohol-replacement, hemp-extract coffee, exotic cannabinoid products, and hemp-extract natural and artificial sweeteners under the Hemp You Can Feel™ brand name.
“We are also seeing a significant number of avenues for deployment of our chemical-free infusion products within both the regulated THC portion of the business and within the market for hemp-based infusions,” Tabatabaei said.
“This includes what we believe are the industry’s first beverage products based on Tetrahydrocannabivarin (THC-V). In April, we announced the May launch of the first commercially available tea and coffee products based on THC-V.
“We are happy to report that interest has been exceptionally strong and that we are on target for May production for this potentially revolutionary product.”