(RTTNews) – Perrigo Co. plc, a producer of over-the-counter health and wellness products, plans to enter the cannabidiol or CBD market through a strategic investment in and long-term supply deal with Kazmira LLC.
Watkins, Colorado-based Kazmira is an industrial scale producer of tetrahydrocannabinol or THC-free, broad-spectrum CBD oil and THC-free CBD isolate from American-grown ground industrial hemp.
The primary ingredient in marijuana is THC, a psychoactive compound that induces the “high” and hallucinogenic effect in the user. CBD is also derived from cannabis plants and does not have psychoactive properties like THC. CBD is believed to relieve or ease symptoms related to health problems.
In addition to the supply agreement, Perrigo will acquire a nearly 20 percent equity stake in Kazmira for $50 million, with $15 million to be paid upon close of the transaction and the balance to be paid within eighteen months.
In the second phase of the partnership, Perrigo will work to launch THC-free hemp-based CBD products in several global markets, while leveraging its supply agreement with Kazmira, which is exclusive for the U.S. store brand market.
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