Rapid Dose Therapeutics and Thrive Cannabis Sign MOU to Provide Quickstrip™ Oral Thin Strips Under a White Label Manufacturing Agreement
March 13, 2019
BURLINGTON, Ontario – March 13, 2019 – Rapid Dose Therapeutics Corp. (“RDT” or the “Company”) (CSE: DOSE), a Canadian bio-technology company focused on innovative drug and active ingredient delivery solutions, is pleased to announce it has signed a Memorandum of Understanding (“MOU”) February 27, 2019 with THRIVE Cannabis (“THRIVE”) providing THRIVE the rights to sell oral thin film strips with RDT’s proprietary QuickStrip™ technology using cannabis distillates provided by THRIVE and by other RDT approved Licensed Producers in Canada. The White Label Manufacturing (“WLM”) Agreement is scheduled to close on or before April 15, 2019, subject to the approval of the Board of Directors of each company.
The WLM Agreement enables THRIVE to offer a differentiated group of products, within their product portfolio. The WLM Agreement gives RDT and THRIVE the option of sub-contracting out portions of the production capacity to Licensed Producers who also wish to purchase strips with their cannabis distillates and where it would not otherwise be feasible on their own, given the costs and technical complexities of producing the oral thin film strip.
RDT benefits through the diversification of the application of its QuickStrip™ technology into specialty products and exposure of the QuickStrip™ brand in sectors of markets RDT would not otherwise have access to through its Managed Strip Services Agreements. RDT is committed to ensuring high-quality products are produced for consumers in the retail and medical sectors. This commitment requires careful analysis of the producer’s production process from growing through to extraction to ensure the distillate meets exacting standards to qualify for use in a QuickStrip™.
Financial impact of White Label Manufacturing Agreements
Under the WLM Agreement, RDT produces and sells co-branded QuickStrip™ products for a fixed price. This is a cost-effective solution for both RDT and THRIVE, maximizing the use of RDT’s production capacity, while enabling THRIVE, and contracted producers, to offer its customer base a smoke-free delivery alternative for cannabis distillates. RDT’s WLM contracts will be based on monthly minimum recurring payments over a five (5) year period.
“RDT has continued to strengthen its position as an innovator within the cannabis delivery system sector providing both consumers and patients a Quick, Convenient, Precise and Discreet™ alternative to smoking, vaping, and ingestible products. We are excited to be working with Thrive to offer a Smoke-Free Choice™ — accelerating consumer adoption and awareness of the QuickStrip™ technology as a trusted brand. RDT expects to continue expanding its global distribution of its proprietary delivery technology for resale globally on a white label basis for medical and adult-use cannabis markets.” said Mark Upsdell, President and Chief Executive Officer of the Company.
“Our team has invested significantly in vetting various smoke-free cannabis delivery systems, such as capsules, inhalers and sprays — the RDT QuickStrip™ technology definitely surpassed all other technologies within the market as the superior smoke-free delivery solution.” said Geoff Hoover, Chief Executive Officer of Thrive. “We look forward to our partnership with RDT and are confident that the addition of QuickStrip™ to our consumer product line will resonate strongly with our customers.”
About Rapid Dose Therapeutics
Rapid Dose Therapeutics Corp. is a publicly-traded Canadian biotechnology company providing innovative, proprietary drug delivery technologies designed to improve outcomes and quality of lives. Through its wholly-owned subsidiary, Rapid Dose Therapeutics Inc., RDT offers Quick, Convenient, Precise and Discreet™ choices to consumers. RDT is focused and committed to clinical research and product development for the healthcare manufacturing industry — including nutraceutical, pharmaceutical and cannabis industries. Within the cannabis sector, RDT also provides a turn-key Managed Strip Service Program enabling RDT’s QuickStrip™ proprietary drug delivery technology to be licensed by select partners. RDT’s service-based annuity contracts drive recurring revenue and facilitates rapid expansion into emerging markets across multiple consumer segments. Rapid Dose Therapeutics is committed to continually create innovative solutions for humans, animals and plants.
For more information, visit: www.rapiddose.ca
For inquiries please contact:
Ofc (416) 477-1052
Ali Mahdavi, Managing Director
Spinaker Capital Markets Inc.
Ofc (416) 962-3300
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
Certain information in this news release may contain forward-looking information within the meaning of applicable securities laws.
Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend”, “will”, “could”, “are planned to”, “are expected to” or the negative of these terms and similar expressions. Statements containing forward-looking information, including, without limitation, in respect of the delivery of equipment and products using the QuickStrip™ product delivery method and the generation of revenues from signed White Label Manufacturing Agreements, express, as at the date of this news release, the plans, estimates, forecasts, projections, expectations or beliefs of RDT management as to future events or results and are believed to be reasonable based on information currently available to RDT management. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; termination of WLM agreements; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally, income tax and regulatory matters; the ability to implement its business strategies; competition; currency and interest rate fluctuations and other risks. Readers are cautioned that the foregoing list is not exhaustive. There can be no assurance that statements of forward-looking information, although considered reasonable by RDT management at the time of preparation, will prove to be accurate as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Actual results and future events could differ materially from those anticipated in such forward-looking statements. Readers should not place undue reliance on forward-looking statements. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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