- Radient Technologies (TSXV:RTI) has signed a definitive three-way CBD agreement with Allied Corp and Dhaliwal Group
- The agreement pertains to the supply, manufacturing, and sale of CBD distillate and isolate for the Canadian market
- The agreement has an initial 12-month term, with an annual option to renew
- The company expects to process 7,500kg of biomass within the first three months, increasing thereafter
- Radient Technologies (RTI) is currently up 8.33 per cent to C$0.20 per share, with a market cap of $53.92 million
Radient Technologies (TSXV:RTI) has signed a definitive three-way CBD agreement with Allied Corp and Dhaliwal Group.
The agreement will facilitate the supply, production, and sale of CBD distillate and isolate for the Canadian market.
According to today’s announcement, Allied will be responsible for the complete supply chain management. This will include transport of the products from licensed hemp farmers to Radient’s Edmonton processing facility, and then on to licensed buyers.
Radient will oversee the conversion of the hemp biomass into the finished CBD products. The company will receive a processing fee, but may also elect to receive a portion of its payment in the biomass itself.
Finally, Dhaliwal will facilitate, through a purchasing arrangement, the sale of the CBD products to the Canadian market.
Denis Taschuk, President and CEO of Radient, was pleased with the tri-party arrangement.
“This agreement will allow us to create the high quality products that our proprietary continuous-flow extraction and processing technology was intended for.
“The strength of our manufacturing platform, coupled with Allied’s trusted reputation as a responsible and reliable sales partner, enables us to bring premium products to more Canadian consumers. We look forward to working with both Allied and the Dhaliwal Group,” he said.
The agreement has an initial term of 12 months, with an annual option to renew.
The company expects to process a total of 7,500 kg of biomass within the first three months, with volumes increasing thereafter.
Calum Hughes, CEO of Allied, also commented on the agreement.
“Retailers are currently facing a challenging environment in receiving quality product.
“Our executive team, based on our knowledge and experience, is becoming a trusted partner in facilitating quality product. We expect many more deals like this to follow,” he said.
Radient Technologies (RTI) is currently up 8.33 per cent to C$0.20 per share at 11:08am EST.
