Calgary, AB and Laval, QC (October 28, 2019) – Sundial Growers Inc. (Nasdaq: SNDL) (“Sundial”), a Canadian licensed producer of cannabis and Crescita Therapeutics Inc. (TSX: CTX and OTC US: CRRTF) (“Crescita”), a Canadian commercial dermatology company, today announced a development and licensing agreement (the “Agreement”) granting Sundial the worldwide rights to Crescita’s proprietary transdermal delivery technologies for the development of topicals containing cannabis and hemp.
The partnership combines Crescita’s leading expertise in dermal sciences and in the development of patented topical formulations with Sundial’s cannabis production, extraction and commercialization expertise. The Agreement will enable the development of unique, high-quality cannabis and hemp topicals for the Canadian and international non-prescription markets.
“Partnering with a world-class dermatology company like Crescita is a significant step for Sundial as we continue to stay on top of consumer trends in the cannabis industry and prepare for expanded global reach,” said Brian Harriman, COO of Sundial. “This partnership is a key component of our international CBD strategy across Canada, Europe, the United States and future jurisdictions, allowing us to provide effective and safe branded products based on differentiated intellectual property (“IP”) that consumers can trust.”
Pursuant to the Agreement, Crescita will develop formulations for topical cannabis and hemp products using its patented transdermal delivery technologies: Multiplexed Molecular Penetration Enhancers™ (“MMPE”) and DuraPeel™ (“DuraPeel”). Based on a study conducted in 2018, MMPE and DuraPeel both showed significantly increased skin absorption of cannabidiol (“CBD”) by up to 14- and 6-fold, respectively, when compared to the control formulation.
“We are thrilled to establish this important partnership with Sundial, a visionary in crafting premium cannabis brands and a company that shares our passion for innovation,” said Serge Verreault, President and CEO of Crescita. “This milestone underscores the strength of our IP and technologies in providing a differentiating factor in the cannabis market and is a step forward in making Crescita a leading dermatology company.”
Sundial will fund the development and formulation costs and will have the worldwide marketing and distribution rights for the newly developed products. In addition, Sundial will support Crescita in applying for and obtaining the Health Canada Standard Processing License for Cannabis. Crescita will receive tiered royalties on the net worldwide sales of these products, and retains the right to leverage its IP for future product development under its own brands.
Sundial’s partnership with Crescita creates strong synergies across its multiple partnership agreements, including its skin disease and anti-aging patents with PathwayRx. Sundial’s initial topical offerings will include a CBD-infused roll-on and topical cream that will utilize the MMPE technology to deliver faster skin penetration without irritation. Both products are expected to be available for purchase in early 2020.