January 26, 2020 - TheNewswire - Ottawa, Ontario – Molecule Holdings Inc. (CSE:MLCL) (CNSX:MLCL.CN) (“Molecule” or the “Company”), a Canadian craft-focused cannabis beverage production company, is pleased to announce that it has signed a binding term sheet with Vortex Cannabis Inc. (“Vortex”). This sets out the terms of a service agreement (the “Service Agreement”), whereby Vortex will sell products produced by Molecule to the provincial retailers of cannabis products (the “Provincial Retailers”). The agreement allows Molecule to begin selling its unique line of cannabis infused beverages throughout Canada, starting initially with Ontario and Québec.
“This is perhaps the most important piece of news we have shared, as working with Vortex enables us to now begin selling products to Provincial retailers across the country. We are excited to have crossed this regulatory hurdle and move into full scale production and sale. We are thankful to Tony and the Vortex team as we begin working together delivering the craft shelf of cannabis beverages to Canadians,” said President and CEO, Phil Waddington.
Under the terms of the Service Agreement, Molecule will pay a percentage of revenues to Vortex for its services. The initial term of the Service Agreement covers 6 months, providing for an extension as required.
“Our agreement with Molecule is evidence of the national scale that Vortex has achieved in its cannabis 2.0 development. We look forward to progressing our relationship with Molecule beyond this important milestone,” said Tony Machias, President of Vortex.
Molecule Inc. currently holds a Standard Processing Licence issued by Health Canada (the “Licence”), which allows Molecule to manufacture cannabis-infused products and sell them to other Licenced Producers (LPs). A Processing Licence requires an amendment to allow processors to sell cannabis products directly to the Provincial Retailers (the “Sales Amendment”). Rather than waiting until the Sales Amendment is issued, this Service Agreement allows Molecule to bring its unique line of cannabis infused beverage products to market through Vortex, while completing its own sales amendment application. Molecule and Vortex anticipate continuing to work together on an ongoing basis.
ON BEHALF OF THE BOARD
MOLECULE HOLDINGS INC.
Per: “Philip Waddington”
President, CEO and Director