IntelGenx (TSXV:IGX; OTCQX:IGXT) and Tilray (NASDAQ:TLRY) signed a definitive license, development and supply agreement to co-develop and commercialize oral film VersaFilm products infused with adult-use and medical cannabis, in anticipation of amended cannabis regulations for the purchase of edible products in Canada.
Under the accord, IntelGenx and Tilray will each fund 20% and 80% of the costs associated with the development of the cannabis-infused VersaFilm products, respectively.
IntelGenx would manufacture and supply the co-developed products to Tilray, and would receive a fixed single-digit royalty on net product sales. Tilray would have the exclusive, worldwide marketing and distribution rights for the co-developed products.
In addition, Tilray will purchase 1,428,571 common shares of IntelGenx at a price of 70 cents (U.S.) a share in a private placement for gross proceeds of $1-million. IntelGenx intends to use proceeds for cannabis-infused VersaFilm product development. The transaction is expected to close on Nov. 9, 2018.
“Both companies see a world where innovative, pharmaceutical-grade cannabis products are made available to adult consumers and patients, and we are looking forward to working with Tilray to make that a reality,” Dr. Horst Zerbe, president and CEO of IntelGenx, said in a statement.
Woody Pastorius, chief revenue officer of Tilray, said that over the long-term, the companies believe that a significant portion of the global cannabis market will be focused on non-combustible products.
“Through this partnership, we look forward to co-developing oral film products infused with cannabis that we intend to market and distributed in Canada and other markets around the world as regulations permit,” he added.
