Freedom Cannabis Inc., a Canadian producer of premier cannabis brands, has formed a strategic relationship with Pervasip Corp PVSP, and its wholly-owned Seattle-based Zen Asset Management, owners of Artizen brand.
The two companies will collaborate on areas of mutual benefit, including co-branding and sharing intellectual property. They entered into the relationship after signing a non-binding letter of intent that forms the basis of the agreement.
Johnfrank Potestio, CEO, said that Freedom Cannabis is a very important step forward. Our company has a very important foothold in the US market that can be developed further as our two companies start to collaborate. The strategic relationship is beneficial for both companies as they build brand awareness in their respective markets. The cannabis companies are licensed producers and managers of premier brands and are quickly gaining market share in Canada and the U.S.
The LOI contemplates a potential joint venture between the two companies for Artizen's branded product to be grown at the Freedom facility just outside of Edmonton, Alberta. This would include the licensing of the Artizen brand in Canada and Freedom licensing its brand to Artizen in the U.S.
The two companies are looking at a possible merger in the future, depending on market conditions and regulatory approvals, that would increase market share in North America. A potential merger would be dependent on due diligence by both parties, Freedom Cannabis pursuing a public offering in Canada, and the legalization of cannabis at the federal level in the U.S.
The LOI provides a path forward for Freedom to secure a foothold in the US market, but the companies are focused on leveraging their synergies in the short term, including the sharing of intellectual property and the co-branding of products.
Freedom and its management team have an impressive foundation for growth, and we are pleased to enter into this relationship, maximizing each other's potential, especially at a time when we are expanding Artizen across the United States.