Company to utilize CBD isolate for distribution of wellness and medical products across North America
NANAIMO, B.C.– Tilray, Inc. (NASDAQ:TLRY), a global leader in cannabis research and production, today announced the terms of a binding letter of intent (“LOI”) to purchase hemp-derived CBD isolate from LiveWell Canada Inc. (CSE:LVWL) (“LiveWell”), which will be sourced from the United States and Canada and utilized for distribution of Tilray-owned wellness and medical products across North America.
The LOI outlines that LiveWell will supply Tilray with CBD isolate made from hemp cultivated and processed in the U.S. and Canada, with first supply commencing in February 2019. The CBD isolate will be used to process finished CBD cannabis products for distribution by Tilray in Canadian and U.S. markets, subject to applicable federal and local laws and regulations.
Regulations in Canada allow for the use of hemp as a source of CBD, as long as the product satisfies certain quality requirements. These new rules will allow for wholly-owned Tilray Inc. subsidiaries, Tilray Canada Ltd. (“Tilray Canada”) and High Park Farms™ Ltd. (“High Park”) to potentially utilize hemp-derived CBD to increase supply of CBD medical and wellness products in Canada.
The Farm Bill in the U.S. presents an opportunity to enter the hemp-derived CBD industry and capitalize on an estimated US$22 billion market. Tilray has the expertise, team and supply in place to pursue this opportunity and looks forward to potentially expanding its product offerings to include hemp-derived CBD in U.S.
“Today’s announcement puts Tilray in a strong position to expand the availability of our products in existing and new potential markets,” says Brendan Kennedy, Tilray CEO. “We’re pleased about the opportunity to increase our capacity to supply high-demand CBD products in Canada.”
As outlined in the terms of the LOI, LiveWell will ensure the hemp-derived CBD isolate supplied to Tilray adheres to strict quality standards, including Good Production Practice (GPP). Prior to distribution, Tilray will ensure that all finished products adhere to applicable law, as well as its internal quality standards.
Tilray looks forward to sharing more information about its expanding product offerings and growing portfolio of world-class cannabis brands.