MariMed Inc. (OTCQB: MRMD) has announced this morning that the company has created a strategic partnership with GenCannaGlobal Inc. Under the terms of the agreement the two companies have entered into a long-term supply agreement in which MariMed will be receiving hemp derived CBD oil from the Kentucky hemp producer GenCannaGlobal.
MariMed will also be investing $30 million dollars into GenCannaGlobal to help scale their companies’ ability to cultivate and extract Cannabidiol (CBD) oil from the hemp plant. MariMed will use the CBD oil supplied to their company to develop their own branded CBD product line.
GenCanna has been in development of their own genetic cultivars of industrial hemp in order to produce high quality CBD oil for the U.S. market. Their facilities meet both GMP and FDA standard for manufacturing as well.
Robert Fireman, President and CEO of MariMed, stated, “MariMed’s renowned product development expertise, combined with GenCanna’s leadership position in premium Hemp CBD, will enable us to expand the Hemp CBD product category by creating compelling new consumer brands, and by developing powerful distribution channels. GenCanna shares our values – including our ‘best practices values in producing premium-quality, consistent, and compliant Hemp CBD oils and extracts.”