A license agreement with a U.S.-based developer of topical creams and ointments will see Canopy Growth (TSX:WEED) distribute hemp oil products in Canada, with options to expand its distribution into other products and countries.
Canopy Hemp, the firm’s hemp-based subsidiary acquired last November, will launch topical hemp-based products in conjunction with Skinvisible Pharmaceuticals, a Las Vegas-based firm. The firm says its Invisicare technology allows for the controlled release of active ingredients over extended period of time.
"This agreement will have an immediate impact on our hemp product lines as this proven technology can be applied to a hemp oil product in today's regulatory environment," said Canopy Growth President Mark Zekulin in a statement.
Canopy Growth has exclusive delivery rights for Canada under the agreement, as well as first right of refusal for other countries, excluding China and the United States.
If Canadian regulations change to allow it, Canopy Growth may also develop a topical product infused with cannabis.
"Moving forward, cannabis product diversity will be increasingly important, and this agreement prepares us for future product opportunities on that side of our business, if and when the regulatory environment evolves,” Mr. Zekulin added.
Shares of Canopy Growth were down to $10.66 in midday trading, a roughly one per cent decrease from market close the day before.