The Co-Production Agreement provides for the production and distribution of vape pens through 2021.
Volero will leverage its leading brand traction and product strategy expertise to design, brand and market their innovative vaporiser products.
Embark will provide high-quality raw materials from its supply chain, high-quality cannabis distillate, formulation and filling expertise from its GPP facility, as well as sales and distribution services across Canada to cannabis distributors and retailers.
“Significant depth of knowledge”
Embark chief executive officer Luc C Duchesne said: "We are proud to be partnering with Sean and the Volero team as they have significant depth of knowledge and experience demonstrated by the consumer recognition of the Flyte brand.
“Our agreement with Volero will allow us to produce the quality 2.0 products the market demands, and that customers expect from Embark."
Volero chief executive officer Sean Trustham said: "This partnership with Embark is a winning move for us.”
"These early days are revealing immense opportunity.
"We have a thorough and considered product pipeline across Cannabis 2.0 categories that we are eager to rapidly bring to market through collaboration with a team such as Embark - the fit is exceedingly good.”
MMJ was a foundation investor in Embark Health in July 2018 and the investment now comprises:
- 3.425 million ordinary shares (approximately 12.7% shareholding) in Embark Health with a book value of C$2.40 per share.
- Warrants that provide the option for MMJ to acquire a further 1 million shares at C$1.75 each up with maturity date of two years after a Liquidity Event;
- Warrants that provide the option for MMJ to acquire a further 1.2 million shares at C$1.202 each up with maturity date of two years after a Liquidity Event; and
- Warrants that provide the option for MMJ to acquire a further 1.125 million shares at C$4.80 each up with maturity date of two years after a Liquidity Event.
MMJ has generated a total return of two times on its investment.