Company Grants New Venture Exclusive License To Commercialize Its Patented Prana Line Throughout Australia
DENVER, CO / ACCESSWIRE / September 14, 2017 / United Cannabis Corporation (CNAB) (United Cannabis or the "Company") today announced that it has signed an Agreement with Releaf Global Pty Ltd. ("Releaf") to form and operate an Australian corporation ("NEWCO") for the purpose of commercializing the Company's patented Prana Bio Nutrient Medicinals, cannabis-centric products and technologies in Australia and other territories.
According to the terms of the Agreement, United Cannabis will grant NEWCO an exclusive, royalty-bearing license to produce and distribute its Prana line of products and will contribute its expertise in cultivation, production and wholesale operations. The partnership also provides the opportunity for NEWCO to import United Cannabis' products from Jamaica until NEWCO is fully operational and able to produce the Company's products in Australia.
On February 24, 2016, Australia legalized medical marijuana for patients with painful and chronic conditions, and provided for approved companies to import, store and sell cannabis while domestic production ramped up to support patient demand. Australia's Office of Drug Control in the Federal Department of Health issued the first license under the medicinal cannabis provision earlier this year, on February 17th.
A study conducted by the University of Sydney Business School forecasts initial demand for medicinal cannabis in Australia could exceed AUD$ 100 million annually (approximately US$80 million). The study indicated demand could grow to AUD$300 million (approximately US$240 million) within the decade if cannabis-derived pharmaceuticals become more mainstream.
Earnest Blackmon, United Cannabis' Chief Executive Officer, commented, "Australia represents a substantial opportunity for United Cannabis. Our Prana line is ideally suited for new markets as it provides patients and caregivers with a guided program to develop therapies targeted to a given patient's unique concerns."
Blackmon went on to say, "The resources provided by Releaf will expedite our ability to establish the infrastructure necessary for a full-scale domestic operation. The relationship also allows us to leverage our Jamaican operation, as Australian regulations provide for the importation of approved products from Jamaica. Our ability to serve the patients in Australia as soon as licenses are granted provides us with a distinct competitive advantage."
Scott Parry, Chief Executive Officer of Releaf Global, added, "I am a strong proponent of the benefits of medicinal cannabis, and United Cannabis' Prana line is the most comprehensive and effective product I've seen. This partnership enables us to introduce tested therapies to the Australian market and gives us the opportunity to help thousands of patients suffering from a wide range of medical conditions. We have already initiated the process to establish this venture and have high expectations for its success."
About United Cannabis Corporation
United Cannabis Corporation is a biotechnology company dedicated to the development of phyto-therapeutic based products supported by patented technologies for the pharmaceutical, medical, and industrial markets. The Company has long advocated the application of cannabinoids for medical applications and is building a platform for designing targeted therapies to increase the quality of life for patients around the world. The Company's products are patent protected, first in class medicines with applications to a global market. United Cannabis trades on the OTCQB under the symbol CNAB.
For further information, please visit www.unitedcannabis.us.
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933, and are subject to Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbors, created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and other results and further events could differ materially from those anticipated in such statements. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements.
SOURCE: United Cannabis Corporation