Canadian cannabis producer The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS) is set to supply CBD for medical trials in Mexico and distribute a CBD-infused, agave-based powder internationally.
On Tuesday, the Kelowna-based company announced two separate agreements with PMI Mexico, a subsidiary of U.S. pharmaceutical firm Merger Group, to supply CBD for trials in private Mexican hospitals and to distribute the succulent-based supplement.
The clinical trial will start once PMI has its first CBD shipment on hand, which is expected to arrive in the first quarter of next year, according to a statement. The trial has been approved by the medical ethics board of Mexico, and will focus on the anti-inflammatory properties of medical-grade CBD oil.
The second agreement involves the manufacturing and distribution of CBD-infused and uninfused Predilife, an agave-based powder that promotes healthy bacteria growth, which has been submitted as a drug master file to the U.S. Food and Drug Administration.
Valens says it will infuse the products at its Green Roads facility in Florida, and then distribute them to Asia, Latin America and Mexico.
Delaware-based Merger Group develops medicines, as well as natural and herbal products. Its Mexico-based subsidiary PMI Mexico is one of the main drug suppliers for the Mexican government and focuses on research, clinical studies and technical documentation, as well as coordinating logistics and import permits.
Read more: Valens gets $40M loan to accelerate growth
“The relationship we have built with PMI Mexico marks an important milestone for Valens’ international expansion and the beginning of our Central and Latin America strategy,” Valens CEO Tyler Robson said in a statement.
“Predilife has significant and unique versatility in terms of reach and market potential given it can be consumed infused or uninfused with CBD. This enables unimpeded distribution of the product regardless of local cannabis regulations, providing Valens access to several international markets.”
This week, Valens said it got a $40-million secured loan.
Recently, Vancouver-headquartered Xebra Brands became the first company authorized to commercialize hemp in Mexico.
Mexico has been estimated to be one of the largest cannabis markets in the world due to its agricultural background, ideal growing climate and low cost of production.
Read more: Mexico won’t legalize cannabis this year