Today, Kelowna-based GTEC Holdings Ltd. (TSXV:GTEC) (OTC:GGTTF) announced that it has signed a letter of intent (LOI) to create a joint venture with TheraProducts Canada.
The venture will see the two companies develop and commercialize cannabis-based products using OLEO™ microencapsulation technology (OLEO).
What is OLEO Microencapsulation Technology?
OLEO is a patent-pending technology of which TheraProducts holds a license. The owner of the Oleo brand and intellectual property is Oleo Technology; a private owned Washington corporation.
OLEO addresses concerns surrounding edible cannabis products and according to GTEC Holdings press release;
"Odor, taste and solubility issues exacerbate the challenges associated with successfully marketing [edible] products... OLEO enrobes cannabis oil distillates and isolates and converts them to hot and cold water soluble, odor-free, taste-free powder that can be added to a wide variety of food and beverage products."
As a result of the success of this technology, OLEO is deemed suitable for the future of the edible and beverage cannabis markets in Canada as well as other legal markets.
The Partnership
The partnership will look like this; GTEC's role will be to supply and convert cannabis oils to OLEO-based products. From there, TheraProducts will supply the equipment and IP required to produce the OLEO products.
Under the terms of the LOI, a finalizing definitive agreement is expected on or before September 1st, 2018. No financial terms were disclosed in the announcement.
“In GreenTec we have found a licensed producer with a vision that is in parallel with ours given their focus on the pharmacological benefits of cannabis," says Peter Hobbes, CEO of TheraProducts.
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About the Companies
GTEC is Kelowna, BC-based, with a focus on growing premium quality craft cannabis in purpose-built indoor facilities.
TheraProducts Canada is a privately owned Ontario-based corporation. It holds multiple patents in the Cannabis and Medical markets.
Features Image: Freepik
