WINNIPEG, Jan. 24, 2019 /PRNewswire/ - DELTA 9 CANNABIS INC. (TSXV: NINE) ("Delta 9" or the "Company") is pleased to announce it has signed a Master License Agreement (the "Agreement") with NanoSphere Health Sciences, LLC ("NSHS") and its Canadian subsidiary, NanoSphere Cannabis International Inc. ("NCI", and collectively with NSHS, "NanoSphere").
The Agreement provides Delta 9 with an exclusive license in Canada to manufacture and sell products made with Nanosphere's patented technology for the delivery of cannabinoids via nanoparticle technology (the "NanoSphere Delivery System of Cannabis"). The two companies are already working on the first product for Canada; an intraoral cannabis oil containing cannabinoid nanoparticles, that is being produced over the next month for an upcoming inspection for final approval by Health Canada.
"The Agreement paves the way for an entirely new form of consumption for both medical and recreational consumers of cannabis," said Delta 9, CEO John Arbuthnot.
"On the recreational side, we can now provide a healthier alternative to smoking or vaping cannabis, but that still gives you the same or better effect," said Arbuthnot. "Equally important, our NanoSphere products provide for the first time a truly appropriate way to deliver medical cannabis, with precise dosage, better bio-availability, and without essentially having to 'smoke your medicine'."
The NanoSphere Delivery System of Cannabis works by nano-encapsulating active ingredients in phospholipid membranes for transportation through the skin and mucosa into the bloodstream within minutes. Cannabis applications of the technology include transdermal viscous gels, intranasal products and intraoral products, all of which provide rapid results, precise dosages and high bioavailability. The NanoSphere Delivery System of Cannabis can eliminate the need for inhalation or ingestion of cannabis, offering users a potentially safer and more effective method of consumption.
"This partnership with Delta 9 marks a critical inflection point in NanoSphere's development, allowing our entry into the world's most developed cannabis market," said NCI President Gary Symons. "I have worked personally with Delta 9 for many years, so I know the extremely high quality of their production, and we are obviously very excited to now be working together on Canada's first NanoSphere product."
Under the Agreement, Delta 9 will pay to NanoSphere a Licensing Fee of $500,000 Cdn. while NanoSphere will equip the production lab and train Delta 9 staff in the production of the NanoSphere Delivery System of Cannabis product line. Delta 9 and NanoSphere will each receive 50 percent of the gross profit from the sale of NanoSphere technology-based products. The initial term of the Agreement is 36 months following the date Health Canada approves the licensed products for sale.
About Delta 9 Cannabis Inc.
Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical marijuana pursuant to the ACMPR and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9's shares trade on the TSX Venture Exchange under the symbol "NINE".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future business plans and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to: (i) Health Canada approvals for Nanosphere's products; (ii) the development of Nanosphere's products; and (iii) sublicensing of Nanosphere's products by Delta 9. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including that Delta 9's current product development plans may change, the required approvals from Health Canada for Nanosphere's products may not be obtained and all risk factors set forth in the annual information form of Delta 9 dated May 31, 2018 which has been filed on SEDAR. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
SOURCE Delta 9 Cannabis Inc.