PreveCeutical Medical hails deal with cannabis producer, which will boost its Sol-Gel programme

Health sciences group PreveCeutical Medical Inc (CSE:PREV, OTCQB:PRVCF) says its Sol-Gel programme has received a big boost – as it struck a research and development supply deal with a licensed producer (LP) of medical cannabis.

Under the deal, effective from September 18, the producer, licensed under the Canadian regulations, will supply PreveCeutical with cannabis oil and dried cannabis plant extract along with certain ingredients.

The firm will use these in its bid to commercialise sol-gels for the nasal delivery of medical compounds, including cannabinoids.

Extremely pleased …

“We are extremely pleased with the agreement between PreveCeutical and the LP,” said Stephen Van Deventer, chairman and chief executive of PreveCeutical.

“The LP is an acknowledged industry leader in Canada in terms of its high-quality, high-margin derivative products that are manufactured under rigorous standards regarding processes, testing and transparency.”

The group’s Sol-Gel programme is trying to develop what is believed to be the first FDA approved, nose-to-brain delivery system of cannabinoids for the relief for a range of ailments, such as pain, inflammation, seizures, and neurological disorders.

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Among the terms of the agreement, the firm will grant to the cannabis producer, non-transferable options to acquire shares in the firm worth a total of C$2mln at an exercise price equal to the closing price of the stock on the date of the deal.

The options will be exercisable for a period of 24 months from the effective date.

The LP will also have a right of first refusal to subscribe for the whole or a portion of any equity financing conducted by PreveCeutical for 24 months from the effective date of the agreement.

More follows … Story by ProactiveInvestors