Freedom Cannabis Inc. forms strategic alliance with Artizen
by CM Staff
The strategic relationship will see the two companies collaborate on areas of mutual benefit, including co-branding and sharing intellectual property.
EDMONTON — Freedom Cannabis Inc., a Canadian producer of cannabis brands, announces that it has formed a strategic relationship with Pervasip Corp, and its wholly owned Seattle-based Zen Asset Management, owners of the Artizen brand to pursue mutually beneficial business opportunities.
The strategic relationship will see the two companies collaborate on areas of mutual benefit, including co-branding and sharing intellectual property. The two companies entered into the relationship after signing a non-binding Letter of Intent that forms the basis of the agreement.
“For Freedom Cannabis, this is a very important step forward,” explained CEO, Johnfrank Potestio. “This provides our company with a very important foothold in the US market that can be developed even further as our two companies begin to collaborate.”
The strategic relationship is meant to be beneficial to both companies as they try and build brand awareness in their respective markets.
The LOI also contemplates a potential joint venture between the two companies for Artizen’s branded product to be grown at the Freedom facility located just outside of Edmonton, Alberta. This would include licensing of the Artizen brand in Canada and Freedom licensing its brand to Artizen in the US.
The two companies will also explore a potential merger in the future, depending on market conditions and regulatory approvals, that would significantly increase market share in North America. A potential merger would be dependent on due diligence by both parties, Freedom Cannabis pursuing a public offering in Canada, and legalization of cannabis at the federal level in the US.
“We are very pleased to have formed a working relationship with Artizen,” explained Potestio. “Artizen shares the same values as Freedom Cannabis and are dedicated to becoming one of the leading brands in North America. The LOI provides significant opportunity for Freedom Cannabis to access the large US market while continuing to build its brand in Canada.”
“Freedom and its management team have an impressive foundation for growth, and we are pleased to enter into this relationship, maximizing each other’s potential, especially at a time when we are expanding Artizen across the United States. Building on the recognition of Artizen being the 9th largest independent cannabis flower brand in the US, Freedom is the perfect strategic partner to both accelerate our growth and enter the Canadian market,” said German Burtscher, Pervasip’s President and Chief Executive Officer.
