While shares of Canopy Growth Corp. (TSX:WEED) stumble in today’s trade, shareholders of Skinvisible Pharmaceuticals, Inc. (OTCQB:SKVI) are simply ecstatic that the two companies have announced a definitive license agreement for Skinvisible's patented topical formulations. Per the agreement, Canopy Growth is exclusively licensed to distribute Skinvisible's topical products in Canada, and shall have a first right of refusal for all other countries, excluding China and the United States.
The agreement covers two distinct product lines made with Skinvisible's Invisicare® technology. Skinvisible will first develop unique topical hemp-based products that will be launched by Canopy Hemp Corporation in Canada and the United States. The agreement also includes potential cannabis-based topical products using the Invisicare® technology when and if federal regulations permit CBD or THC infused topical products for sale in Canada.
The demand for topically-delivered cannabis is increasing, driven by consumer awareness of its medical benefits and favorable legislative changes worldwide. Invisicare, a technology with 14 international patents, is able to improve upon the delivery of ingredients (i.e. CBD or THC), delivering up to five times more than brand leaders.
As mentioned off the top, shares of WEED are down less than 1% on the news, however, the big story is for shareholders of SKVI which have pushed up the micro-cap over 80% to $0.06 in late-afternoon trading.
