IntelGenx Receives First Purchase Order For CBD Filmstrips From Heritage Cannabis

SAINT LAURENT, Quebec, Jan. 07, 2021 (GLOBE NEWSWIRE) -- IntelGenx Corp. (TSX-V:IGX)(OTCQB:IGXT) ("Company" or "IntelGenx") today announced the execution of a definitive supply agreement (the “Agreement”) with Heritage Cannabis Holdings (“Heritage”), an international medical cannabis licensed producer based in Toronto, Canada (CSE:CANN)(OTCMRKTS:HERTF), for the manufacturing and supply of filmstrip products containing 10 mg of CBD using IntelGenx’s VersaFilm technology (“CBD Filmstrips”) for the Canadian and Australian markets.

Stemming from the Agreement, IntelGenx has received its first purchase order from Heritage for 50,000 CBD Filmstrips. IntelGenx expects to make its first shipment of product to Heritage in the second quarter of 2021.

Pursuant to the Agreement, in addition to receiving a manufacturing margin, IntelGenx will also receive a double-digit royalty on the gross margin based on product sales. Heritage will supply CBD material for IntelGenx’s filmstrip manufacture and supply in Canada and Australia on a non- and semi-exclusive basis, respectively. The Agreement also contemplates an option on future co-development of CBD and THC filmstrips using proprietary technology from both companies, under certain conditions.

The CBD Filmstrips will be produced at IntelGenx’s manufacturing facility under Canadian GPP conditions and registered as a product for sale with Health Canada as a cannabis product governed by the Cannabis Act and with the Australian Department of Health’s Therapeutic Goods Administration as a medicinal cannabis product governed by the Narcotic Drugs Act.

Dr. Horst G. Zerbe, CEO of IntelGenx, commented, “We believe this first-ever purchase order for commercial quantities of an oral thin film product based on our VersaFilm technology represents a value inflection point for our Company. We are looking forward to building a strong partnership with Heritage, which shares our commitment to making innovative and high-quality oral thin film products available to medical cannabis consumers.”

Umar Syed, Heritage’s President of the Medical and International Division, commented, “Rapidly dissolving CBD Filmstrips provide tangible benefits for medical cannabis consumers, such as a more discreet and convenient administration method. As we continue to build a wide spectrum of medical cannabis products that offer both traditional and newer delivery platforms, we are excited to be at the stage where we will be distributing CBD Filmstrips in Canada and Australia.”