ASX-listed Creso Pharma has signed a non-binding letter of intent with CERES Natural Remedies to distribute and sell its anibidiol range of CBD and hemp animal health products in the US with a revenue target of US$5m over two years.
CERES is a leading provider of plant-based remedies and CBD products and a subsidiary of High Fidelity, Vermont’s largest independent cannabis company which has generated more than US$35m in revenue since 2013.
The parties have agreed to enter into a formal commercial agreement on or before April 1, 2021 setting out the terms upon which CERES will sell anibidiol through its established distribution network in the US.
The deal is subject to federal legalisation of CBD in the US, something which both parties expect to happen in 2021.
Creso Pharma non-executive chairman Adam Blumenthal said: “CERES has an established distribution footprint and relationships with over 50,000 stores across the country, as well as a track record of scaling up its own branded products and international offerings.
“We will continue to monitor regulatory and policy shifts in the US to ensure the company and CERES are primed for launch and expect first sales to add to the company’s revenue streams.”