Willow Biosciences strikes first commercial supply agreement for CBG with UK cosmetics firm Cellular Goods

Willow Biosciences Inc (TSE:WLLW) (OTCQX:CANSF) (FRA:3D7) has entered into a multi-year deal with UK consumer products manufacturer Cellular Goods PLC (LON:CBX) (FRA:6XS) to supply biosynthetically-derived cannabigerol. 

Cellular Goods will use Willow’s ultra-pure cannabigerol in its premium cannabinoid-based skincare products that are slated to launch later in the year. 

In a statement, Willow said it expects to ship the first batch of its cannabigerol, or CBG, which is expected to arrive in the UK in July. 

READ: Willow Biosciences added to NYSE-listed Cannabis ETF

Vancouver-based Willow has developed a proprietary process to biosynthetically produce CBG and other high-value cannabinoids in commercial quantities. Referred to as the “mother of all cannabinoids” because it naturally evolves into other cannabinoids like THC and CBD, CBG is a non-psychoactive compound that could have antimicrobial and anti-oxidant functions in humans. But the cannabinoid occurs in very small concentrations in the plant, making it difficult to manufacture economically at high purity levels.

The compound has demonstrated effectiveness in skincare. Earlier this year, Willow and its development partner Signum Biosciences Inc revealed studies that showed CBG had anti-inflammatory, anti-aging and antimicrobial properties on human skin, which Willow told shareholders makes its CBG an “ideal core ingredient” for cosmetics.

In May 2021, the European Commission approved the use of CBG in cosmetics in the European Union.

“Successful products start with the best ingredients and being able to source consistent, highly-pure cannabinoids via cellular agriculture from a trusted provider like Willow is essential to our business,” Cellular Goods CEO Alexis Abraham said in a statement.

“CBG is the most promising cannabinoid for skincare applications and we believe it will become a must-have upgrade to people’s daily routines.”

Cellular Goods will be the first to bring a range to market in the UK, Abraham added.

Trevor Peters, Willow’s CEO, told investors that Willow was “very excited” to announce its first commercial supply agreement for CBG.

“In just over two years, we have gone from proof of concept in the lab to commercial scale up and sales of our first cannabinoid, which will be slated for use in a consumer product. Cellular Goods are at the forefront, developing premium consumer cannabinoid products in the UK and we are thrilled to be supplying them with our ultra-pure, biosynthetically made CBG.”

Shares of Willow climbed 2.44% in Toronto at C$1.26 and traded at US$0.99 over the counter at Thursday’s opening bell.

Contact Angela at [email protected]

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Story by ProactiveInvestors