Lincoln University New Zealand based Greenlab’s Australian subsidiary has inked a deal with local medical cannabis distributor Cannvalate.
Greenlab, founded in 2019, carries out research and development and will be scaling up to a commercial indoor cultivation facility to manufacture novel products.
The initial research focus of Greenlab’s program is optimizing the cultivation process to reduce cost of production, increase yield and accelerate growth cycles. The company says it has access to unique germplasm for selection of ” elite” medical cannabis clones for the yield of therapeutically active major and minor cannabinoids.
Greenlab white label products are currently being manufactured by Canada’s Valens Company (TSX: VLNS) and Mile High Labs UK.
Under the two-year agreement with Cannvalate, Greenlab Australia Pty Ltd will supply the company with various products that will be accessed via the Australian Therapeutic Goods Administration (TGA) Special Access Scheme,
Cannvalate was established in early 2018. Among its activities is the provision of a streamlined service that seeks to improve accessibility to and delivery of medicinal cannabis treatments. The company currently operates in Australia and New Zealand and has its sights on setting up shop in the United Kingdom.
Cannvalate claims to be the largest network of cannabis medicine prescribers in Australia and to hold estimated market share in Australia of almost 50% of cannabis prescriptions.
“We are excited to be working with Cannvalate in Australian market to bring new formulations and products to the New Zealand market in near future” said Kevin Edgar, CEO of Greenlab.
In January, Greenlab announced it had achieved a significant milestone of collecting representative medicinal cannabis strains. This it says will enable scaled up production of plants with consistent and repeatable cannabinoid/terpene content.
“Our advantage is scientific,” says the company in a presentation. “Our sector leading R&D will allow us to fast-track better chemovars, and develop patient focused novel products.”
Through the arrangement with Cannvalate, Greenlab expects approximately $2.4 million (assumed NZD) of committed revenue stream over the 24-month term, with an option for an extension for an additional year on the same terms and conditions. The level of revenue will depend on the mix of derivative products supplied.