Mountain Valley MD Holdings Inc. (OTCMKTS:MVMDF) was gaining momentum after announcing the signing of a letter of intent for the completion of a licensing deal with Red White & Bloom Brands Inc. (RWB). RWB is a public, multistate marijuana operator whose premium brands are available in the cannabis market across the US.
The companies anticipate closing a Product Development and Commercial Licensing Agreement by the end of October this year. According to the terms of the agreement, Mountain Valley will leverage its Quicksome tech and proprietary CBD solubilization technique to create formulas that will be applied to RWB for different cannabis product applications.
Interestingly, RWB will have license exclusivity in Florida, California, and Michigan to produce and supply MVMD’s cannabis products for payments that include royalties and R&D fees.Mountain Valley had previously worked in a novel solubilization technique applied to CBD and THC molecules. The initial formula Mountain Valley will develop as per the LOI is the Quicksome THC-derived sleep formula. MVMDF is worth watching in the coming months.
Market Reaction:
On Wednesday, MVMDF stock jumped 2% at $0.2170 with more than 153K shares, compared to its average volume of 141K shares. The stock has moved within a range of $0.2128 – 0.2277 after opening the trade at $0.2152.
