Canbud Distribution Corp. (CSE: CBDX) (FSE: CD0) (the “Corporation” or “Canbud“) is pleased to announce that on September 3,2021 it has entered into a memorandum of understanding (the “MOU“) with the College of Agriculture, Science and Education (“CASE“), establishing a business and research and development (“R&D“) relationship between the parties. CASE is a tertiary educational institution located in Port Antonio, Jamaica, with a tripartite mandate of teaching, research, and outreach.
Under the terms of the MOU, Canbud and CASE formed a commercial relationship focused on the research and development of healing practices facilitated by psilocybin producing mushrooms, and the manufacture of consumer products from psilocybin mushrooms for health benefits. The MOU includes, among other things, provisions to reflect the following key agreements and understandings between the parties:
- The term of the MOU commenced on September 3, 2021 and ends on August 22, 2022.
- During the term Canbud will lease its existing mobile commercial facility to CASE at no cost for use in an R&D capacity and for commercial production, based on terms to be agreed separately.
- Canbud will provide to CASE up to $10,000 of funding for a mutually approved R&D program intended to evaluate the potential uses of psilocybin and other psychedelic properties within mushrooms. Any results of these research will be made available to Canbud for its exclusive use.
- If and when CASE commences commercial production, the parties intend to negotiate and enter into a separate agreement, which would provide, among other things, that Canbud would have right of first refusal to acquire any commercial production, and at least 50% of commercial production would be purchased by Canbud on agreed terms. CASE would have the ability to sell any production not purchased by Canbud, with economics to be shared by CASE and Canbud on terms to be agreed by the parties.
- The respective ownership rights to any intellectual property are to be agreed by the parties prior to any commercialization or monetization of these rights.
- CASE would seek to acquire all the necessary research licenses to facilitate the exportation of mushrooms to both Canada and the United States of America once commercial production plans are finalized, subject to applicable laws.
- CASE will manage and operate the research laboratory.
Steve Singh, CEO of Canbud, notes “We are extremely pleased to enter into research partnership with CASE that is intended to help enable Canbud to undertake a scientific approach to understanding the medicinal properties of specific mushrooms and potentially replicate the cultivation of those spores on a commercial scale in the future.”
About Canbud Distribution Corp.
Canbud is a science and technology health and wellness company carrying on business in the plant based, psychedelic pharmaceutical and non-psychedelic nutraceutical, and hemp cannabinoid (CBD) vertical markets.