New Product License and Supply Agreement for US recreational cannabis market
Avecho Biotechnology Limited (ASX:AVE) has today announced it has entered into a licensing and supply agreement with US company Team SAAS LLC (“SAAS”) for the use of its proprietary TPM® technology in recreational cannabis products.
Recreational cannabis is a rapidly growing market in the US, with sales of cannabis-related products totalling US$17.5B in 2020.
Under the agreement, SAAS will use TPM® – which will be manufactured in Australia at Avecho’s Clayton facility – to develop and commercialise a unique cannabis/THC distillate for use by the recreational cannabis manufacturing sector in the United States.
Avecho CEO, Dr Paul Gavin, said:
“Recreational cannabis in the US, and globally, represents a large and lucrative market for TPM® – based primarily on the fact that there is limited innovation and product differentiation, which we can seamlessly support. This is a highly considered move to diversify and strengthen Avecho’s revenue streams, as we pursue pharmaceutical CBD product development as a central part of our core business.”