Sundial Growers Inc. (“Sundial”) has signed a Term Sheet Agreement to purchase CBD isolate from the leading producer ICC Labs Inc. (“ICC Labs”) (TSX VENTURE: ICC). The agreement, pending completion of ICC Labs GMP-certified laboratory, enables Sundial to purchase up to 250,000 grams of 99% pure CBD per year to supply the Canadian and international markets.
“This agreement gives Sundial access to a quality source of CBD from internationally recognized producer ICC Labs,” said Sundial CEO, Torsten Kuenzlen. “CBD products are in high demand and this agreement allows us to secure the supply we need to meet patient and consumer demand in the Canadian market and beyond.”
The agreement also contains provisions for the creation of brands and product lines in conjunction with ICC Labs, which will be added to Sundial’s global brand portfolio for the medicinal market. As part of the agreement, Sundial will have exclusive international distribution rights to the newly co-created brands and product lines.
“This agreement allows ICC Labs to expand its footprint in Canada and to create exciting new brands that will be included in Sundial’s global portfolio,” said Alejandro Antalich, Chief Executive Officer of ICC Labs. “Sundial’s core expertise in marketing and branding coupled with ICC Labs product development capabilities will be a great benefit to patients and consumers.”
Under the terms of the agreement, CBD will be imported into Canada through Sundial’s partnership with Plantbiosis Ltd., which is a Canadian licensed dealer. All imported product will be tested in accordance with Canadian standards. The terms of this non-binding agreement are subject to applicable regulatory approvals, including those from TSX Venture Exchange (the “TSX-V”) and applicable government authorities in Uruguay and Canada and receipt of all applicable permits.