Wildflower Marijuana Inc. has signed a Letter of Intent with a manufacturer of cannabis e-juice. The joint venture is established to develop a line of e-juice products for Wildflower. The joint venture partner is currently a licensed Tier 3 producer and processor in the State of Washington.
Pursuant to the joint venture, Wildflower will grant an exclusive license to manufacture, market and sell certain products, recipes, and promotional materials under the Wildflower brand in the State of Washington. As part of the agreement, Wildflower will issue 400,000 shares and pay $85,000 to its joint venture partner. In consideration, Wildflower will receive a licensing fee equal to 20% of the gross sales of Wildflower branded products.
Wildflower’s new joint venture partner specializes in the manufacture of cannabis e-juice/ vaporized delivery systems market sector. E-juice is a concentrated form of cannabis juice that is consumed through vaporization. The expertise, research and development from Wildflower’s new partner will help develop a full line of e-juice products for Wildflower both in the recreational and medicinal market segments in Washington and other markets.
Vaporizing e-juice is growing at an accelerating pace ensuring that, Wildflower will be providing a full line of products to address this trend and growing demand. In the Colorado market, the trend continues to move away from consumption of dried cannabis with fifty per cent of products sold being ancillary products such as edibles, e-juice, infused drinks, topical products, tinctures and oils.
In Washington State, licensing requirements stipulate that all license holders and their shareholders, directors, officer and financiers must be Washington State residents. While Wildflower cannot hold any interest in any license in Washington State it can license its brand and provide consulting services. These consulting services will involve the implementation of Wildflower’s Quality Assurance Program, Standard Operating Procedures and Good Manufacturing Practices to ensure all products associated with the Wildflower brand are of the highest quality.
The Washington State government continues to work hard to create a viable legal cannabis market. Recent reports show that only 118 retail shops currently report any earnings. The state has legislated giving out 334 retail licenses this year. Retail sales have risen in excess of 100 per cent in the past six months. Washington State has also revisited their taxation system and have now legislated removing any excise tax which reduces the burden placed on the producers and processors. Instead they will now have one sales tax of 37% at point of purchase.
President and CEO William MacLean states, “Much like Coca Cola has bottling companies to manufacture and distribute products all over the world, Wildflower will continue to develop strategic partnerships with companies in emerging cannabis markets. These partnerships will be integral to not only developing products and addressing trends in the sector but in positioning Wildflower to set new trends. I am excited with the progress we have made and look forward to continuing to develop the Wildflower brand and product line.”
