Perrigo Enters Into Cannabidiol Market Through Investment In Kazmira

(RTTNews) - Perrigo Company plc (PRGO) said that it has entered into the cannabidiol or "CBD" market through a strategic investment in and long-term supply agreement with Kazmira LLC, a supplier of hemp-based CBD products free of tetrahydrocannabinol or "THC-free" based in Watkins, Colorado.

Perrigo said its minority equity investment initiates the first phase of the partnership where the two companies will collaborate to scale-up Kazmira's facilities and laboratories, in accordance with current Good Manufacturing Practices or "cGMP", to produce THC-free CBD from industrial hemp that meets Perrigo's high standards for reliability and consistency.

Perrigo will work to launch THC-free hemp-based CBD products in a number of global markets, while leveraging its supply agreement with Kazmira, which is exclusive for the U.S. store brand market.

In addition, Perrigo will acquire an approximate 20% equity stake in Kazmira for $50 million with $15 million paid upon close of the transaction and the balance within 18 months.