New Revenue Opportunity and Next Step to Creating a Global Medicinal Cannabis Brand
TORONTO, Dec. 18, 2014 /CNW/ - Bedrocan Cannabis Corp. (TSXV: BED) ("Bedrocan" or the "Company") announced today the expansion of certain rights related to its exclusive license and distribution agreement with its Dutch licensor, Bedrocan BV. The amended agreement now provides Bedrocan with the right to sub-license the commercial use of Bedrocan BV's genetically-identical products, strains and proprietary production techniques in South America. The amended agreement provides for any revenues generated via Bedrocan's sub-licenses to be shared equally between Bedrocan and Bedrocan BV.
"I am delighted to have concluded this agreement with our partner, as it opens up new markets that provide Bedrocan with new potential long-term revenue sources. This represents the next step in our business strategy to establish Bedrocan, in cooperation with our Dutch partner, as a global brand in medicinal cannabis," said Marc Wayne, President and CEO of Bedrocan. "We can now initiate discussions with interested sub-licensing partners in South America, for the rights to gain access to our production techniques, growing expertise, and Bedrocan's level of product quality, standardization and production yield."
Under the terms of the amended and restated license and distribution agreement between Bedrocan and Bedrocan BV, Bedrocan has the right to sub-license the product and trademark commercialization rights in South America for a term of up to 15 years, unless extended by mutual consent. Bedrocan has agreed to pay Bedrocan BV 50% of all sub-license revenues received by Bedrocan, and paid quarterly in arrears. Furthermore, Bedrocan and Bedrocan BV agree to share equally in all third party out-of-pocket costs in regards to generating any sub-license revenues under any sub-license agreement. All other material terms and conditions of the existing license agreement remain unchanged.
Bedrocan and Bedrocan BV are focused on medicinal cannabis research and product innovation, and have been producing and supplying government-regulated medicinal cannabis for 13 years. Bedrocan's strains of pharmaceutical-grade cannabis have been used by more than 20,000 patients in seven countries, including Canada. The Company is committed to clinical research with ISO 9001-rated production processes and product development, on an international scale. Bedrocan is one of only two companies currently supplying pharmaceutical-grade medicinal cannabis in Canada. Bedrocan Cannabis Corp. trades on the TSX Venture Exchange under the symbol "BED". www.bedrocan.ca
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SOURCE: Bedrocan Cannabis Corp.
For further information: Cam Battley, Bedrocan Cannabis Corp., [email protected], +1.905.864.5525, www.bedrocan.ca; For investor relations, please contact: Jennifer Wood, TMX Equicom, +1.416.815.0700 ext. 226, [email protected]