Lumby cannabis company looking at deal to bring new anti-microbial technology to Western Canada

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A North Okanagan cannabis company is seeking exclusive rights to a new technology.

True Leaf has signed a non-binding memorandum of understanding with Cold Plasma Group to bring organic cannabis anti-microbial technology to Western Canada for the first time.

Under the agreement, True Leaf will be the only licensed producer offering the technology in the region.

It is anticipated both companies will enter into a joint-venture agreement and a share purchase option agreement on or before July 31.

The parties anticipate they will split the cost of the CPG plasma-assisted sterilization equipment and commissioning at True Leaf’s facility in Lumby. They will also split the operational costs and revenue derived from it. Corporate approval is required before the agreement is finalized.

During the growing process, cannabis is prone to microbial contamination and can be infected with bacteria and mould. Many producers use irradiation to combat this, whichTrue Leaf says "may alter the moisture content, texture, colour, cannabinoids, odour and terpene profiles of the product."

"This agreement is timely as a B.C. government study released last week shows representative samples of unregulated cannabis were tainted with 24 pesticides and unacceptable levels of bacteria, fungi, lead, and arsenic. This highlights the potential pitfalls any producer can face and the need for alternatives to irradiation which can further compound the quality issues and dollar value of the treated product."

CPG’s technology uses oxygen-enriched plasma to disinfect cannabis without degrading the quality of the product. It allows growers a path to pesticide-free product by treating microbial contamination just before packaging rather than during the growth cycle.

"Our mission is to bring higher quality craft cannabis to consumers," says True Leaf CEO Darcy Bomford.

True Leaf has launched both a traditional private placement and an equity crowdfunding offering for investors. For more information, click here.