PreveCeutical Medical signs multi-million dollar deal to supply cannabidiol to Crushedit

Health sciences company PreveCeutical Medical Inc (CNSX:PREV) has signed a non-binding letter of intent to supply cannabidiol to Crushedit LLC that that could generate more than C$16 million in sales.

Under the agreement’s terms, PreveCeutical’s new cannabis division will supply Crushedit with a minimum of 2,500 kilograms of cannabidiol isolate over a 12-month period at a purchase price of C$6,500 per kilogram, for aggregate sales proceeds of at least C$16.25 million.

READ: PreveCeutical Medical poised to buy Penta 5 group in share deal

“The transaction is very beneficial to PreveCeutical as the revenue from the sales of the CBD isolate positions us for future growth to increase shareholder value and allows us to continue executing our vision of becoming a global preventive healthcare company,” said PreveCeutical CEO Stephen Van Deventer in a statement.

The funds paid by Crushedit will be held in escrow until local testing of the CBD isolate is completed and all terms related to the transaction are agreed upon in a contract of sale between the two parties.

PreveCeutical has five research and development programs; which include dual-gene therapy for curative and prevention therapies for type 2 diabetes and obesity; non-addictive analgesic peptides to replace addictive painkillers such as morphine and fentanyl; and therapies for treating athletes who suffer from concussions.

PreveCeutical shares slipped by 5.88% to hit C$0.08 in Tuesday’s early trading session.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors