Under the terms of the licensing agreement, Cannabis Global, Inc. will license its unique cannabinoid infusion technologies, which will be used by Budcars for the production of super-premium, highly bioavailable cannabis edibles.
"We have developed and have pending patents on several technologies that not only make the production of cannabis edibles less expensive but also improve product quality,” said Cannabis Global CEO Arman Tabatabaei. “While we are rolling out our own hemp-oriented product lines utilizing these technologies, we are now able to leverage these developments via licensing arrangements to manufactures within the regulated cannabis markets. We are looking forward to our working relationship with BudCars and Sugarmade.”
Cannabis Global will supply technology and licensing rights to BudCars, which will be responsible for the manufacturing and distribution of cannabis edible products to its delivery customer base. Additionally, BudCars is being granted rights to manufacture and distribute products, based on the technologies, within the state of California, under BudCars' existing cannabis licenses.
“This agreement is an important additional step relative to opportunistic margin expansion opportunities for BudCars through selective vertical integration and brand internalization,” said Sugarmad CEO Jimmy Chan. “Additionally, the agreement allows BudCars to expand its marketing efforts in the fast-growing cannabis edibles sector. While sales across the board for BudCars have been up significantly since the COVID-19-related stay at home orders, sales of edibles have been especially strong. We welcome Cannabis Global, Inc. to the BudCars and Sugarmade families."