Earlier today, Gilla Inc. (OTC:GLLA) announced that the company has signed a non-binding LOI (through their Canadian subsidiary, Gilla Enterprises Inc.) with an undisclosed Canadian licensed producer to collaborate with the L.P. on the design and production of a cannabis vapor solution.
The Terms of the LOI
Gilla and the LP would enter into a definitive agreement to provide both private-label and branded cannabis vapor products for the LP to manufacture and distribute in Canada through the LP's authorized distribution channels.
Gilla will work with the LP to develop the operating procedures used to manufacture the products in complaince with Health Canada's regulations (both in regards to the ACMPR and regarding medical devices)
Gilla would receive a 10% royalty on gross revenues from the sales of private label products. Royalties generated from the sales of Gilla branded products will be determined at a later date on a case by case basis.
Gilla's Chair and CEO, Mr. Graham Simmonds
"This is a great leap forward for our cannabis concentrate division," stated Mr. Graham Simmonds, Chair and CEO of Gilla. He added, "We have put a tremendous amount of work into the development of these products which will receive a higher level of scrutiny than most cannabis vape products have endured to date. Working with a market-leading partner in both quality and overall industry sales provides Gilla with a powerful platform to demonstrate the competitive edge of our proprietary cannabis products and ability to grow our footprint throughout Canada. We will also continue to pursue additional licensing agreements to broaden our market reach into additional jurisdictions as we see fit."
In late trading Wednesday, shares of Gilla Inc. (OTC:GLLA) are up more than 6% on higher than average volume. Year-to-date, shares of Gilla are down nearly 1%.
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