Laguna Blends (CSE:LAG; OTCMKTS:LAGBF; FRA:LB6A) announce that it has signed a non-binding letter of intent with Cannaceuticals of California, USA, whereby Laguna and Canna plan to enter into a definitive Manufacturing and Exclusive Licence Agreement for the purpose of pursuing mutually beneficial business opportunities in the Cannabidiol skin care industry. The parties have agreed to an exclusivity period until July 29th in order to negotiate and sign the M&L Agreement.
As quoted in the press release:
The LOI contemplates a manufacturing and licensing arrangement that includes the following material terms:
- Laguna will purchase the entire existing Canna inventory of 4,500 units for each of the eight existing Canna products for payment of: (i) US$250,000 (less an initial deposit of US$24,500 that is payable within 7 days of entry into the M&L Agreement) on a monthly payment schedule over a six-month period; and (ii) a licence fee of US$100,000 payable in common shares of the Company at the prior day’s closing market price upon entry into the M&L Agreement.
- Laguna will receive an exclusive licence to sell the Canna products for an initial period of two years in the USA and Canada. In addition, Laguna will receive the licence and marketing rights to sell the Canna products in Asia, Europe and Mexico subject to Canna receiving regulatory approval for such sales in those markets and provided Laguna has expanded to those countries. The renewal term is anticipated to be determined at the end of the initial term.
- Canna will contribute its research and development expertise in CBD-derived, high quality, Canna skin care products and Canna will continue to manufacture and or arrange manufacturing for future Canna skin care inventory requirements for Laguna as required.
- Laguna will take possession of all of the existing Canna inventory after the initial deposit and licence fee has been paid.
Laguna Blends Founder and CEO, Stuart Gray, stated:
Canna has spent a tremendous amount of time and financial resources to create what we believe is the highest quality CBD skin care line available on the market today. By combining the known benefits of CBD’s into a skin care product, we anticipate that Laguna is poised to become a direct sales leader in the skin care industry.” Stuart Gray went on to say, “By offering the Cannaceuticals skin care line of products to our affiliates, the Company anticipates an increase in product sales and recruitment of new affiliates.
Connect with Laguna Blends (CSE:LAG; OTCMKTS:LAGBF; FRA:LB6A) to receive an Investor Presentation.