Creso Pharma Ltd (ASX:CPH) (OTCMKTS:COPHF) (FRA:1X8) has signed a non-binding letter of intent (LOI) with ImpACTIVE Holdings Ltd to distribute the company’s suite of hemp CBD based human health products, CannaDOL and cannaQIX®, in Canada and the US.
ImpACTIVE was founded by current and former high-profile athletes who have struggled with injury and wanted to provide an alternative treatment route to the athletic community and has developed a range of CBD-based products, designed to reduce muscle and joint inflammation without the use of heavy narcotics or prescription pharmaceuticals.
As part of the LOI, Creso will also obtain the rights to distribute ImpACTIVE’s CBD roller application in Switzerland and Europe.
“Large market opportunity”
The global market for CBD products in the sport and recreation industries is estimated to be valued at US$22 billion by 2022 and C$220 million in Canada alone.
Creso commercial director Jorge Wernli said: “We are very proud to enter the sports and recreational market with such a high calibre partner as ImpACTIVE.
“This LOI is important for Creso Pharma, as it further broadens our international footprint and provides another large market opportunity.
“We look forward to working with ImpACTIVE to ensure all products are well received in Europe and North America, and also leveraging their innovative product range to further add to the company’s growing sales profile.”
European distribution plans
The company will also become an authorised distributor of ImpACTIVE’s CBD based roll-on product range, with an initial focus on Switzerland where Creso will target the growing sports and recreational market through a range of retail outlets.
Creso has access to more than 2,100 pharmacies, drug stores and specialised retailers as well as in excess of 400 sport and fitness centres, and large specialist retailer groups, and expects to receive strong uptake.
The launch of the product range is anticipated in April 2021.
The initial term of the agreement is one year and will automatically renew after one year unless either party notifies the other of their decision to not renew the agreement within 90 days prior to the expiry of the initial or renewal term.
Each distributing party is responsible for obtaining all the necessary regulatory approvals and registrations required to sell the hemp CBD based products in the relevant jurisdiction.