PreveCeutical Medical Inc. (CSE: PREV) (OTCQB: PRVCF) (FSE: 18H) signed a development agreement with Asterion to enter into a joint venture that will see the two companies develop several medicinal cannabinoid products. The products will comprise high quality transdermal patches, sublingual tablets and others that the companies will jointly evaluate.
According to the CEOs of both companies, Stephen Van Deventer of PreveCeutical and Paget Hargreaves of Asterion, the joint venture will help them advance their missions and goals. The two firms are focused on improving health care and quality of life through science and technology enhancements in natural products.
Into the joint venture, Asterion brings high-quality yet low-cost strains of medicinal cannabis. On its part, PreveCeutical will leverage this to come up with products to meet the demand for personalized and effective cannabis-based therapies.
The ailments that these high-quality cannabis products target include chronic pain, epilepsy, inflammation and anxiety disorders, among others. The agreement also clearly states the terms of reference between the two companies, including the aspects of patent ownership and revenue distribution (http://cnw.fm/OH9tD).
Funding for the project will be provided in whole by Asterion at an agreed-upon cost, as and when it is needed. PreveCeutical will facilitate research and provide other resources for use in furtherance of the joint venture initiatives.
Intellectual property and products rights arising within the term of the development agreement will be partly owned by Asterion and PreveCeutical in the ratio of 80 percent to 20 percent, respectively. The joint venture will be in effect for the two years and renewable thereafter for another two-year term.
Revenue or proceeds from the sale of the resulting products and intellectual rights will be shared in the same ratio as the intellectual property ownership, 80 percent to Asterion versus 20 percent to PreveCeutical.
According to Multilateral Instrument 61-101, the development agreement is a related party transaction, since, at the time PreveCeutical was signing it, directors, some of whom are now former directors, as well as the company’s executive officers, were party to it.
PreveCeutical is a health sciences company based in Vancouver, Canada. It utilizes natural and nature identical products to develop innovative options for both preventive and curative therapies. Currently, the company has a total of five research and development programs. One of the notable programs is the Sol-gel drug delivery program.
Sol-gel is administered through the nasal passages, and, once it comes into contact with the mucosal tissue, it gels rapidly, thus paving way for direct delivery from the nose to the brain. This mode of delivery is effective and greatly improves bioavailability, because it bypasses the stomach and intestines.
For more information, visit the company’s website at www.PreveCeutical.com
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