Hope this helps a little more. I would assume every deal is different but at least u can get the concept:
FoxBarry Farms, LLC Will Be the Exclusive Producer and Distributor for All United Cannabis Branded Products in California
DENVER, CO / ACCESSWIRE / January 6, 2015 / United Cannabis Corporation (CNAB) (the "Company" or "United Cannabis") today announced that it has signed a consulting and licensing agreement with FoxBarry Farms, LLC ("FoxBarry"), whereby FoxBarry will be the exclusive licensee and distributor of United Cannabis branded medical marijuana products in the State of California.
Agreement Highlights:
- FoxBarry will be the exclusive authorized distributor of the United Cannabis brand of medical cannabis products in the State of California
- FoxBarry has earmarked $30 million to fund all phases of the California state-wide program
- The Company will receive $200,000 in prepaid royalties for exclusive licensing rights in the State of California
- United Cannabis will provide a variety of consulting services to FoxBarry-managed operations, including cultivation, harvesting, processing and sales of medical marijuana and medical marijuana infused product
- United Cannabis will assist FoxBarry in coordinating programs with at least three different federally recognized tribes on their reservations, covering the northern, central and southern areas of California
- The first location will be located in Northern California, and operations are expected to begin in the next 30-45 days
- United Cannabis will receive a 15% royalty payment on the net sales derived under the agreement
The FoxBarry group of companies provides a variety of economic development opportunities to its Native American partners. Working directly with its tribal partners, FoxBarry provides funding and management expertise in turnkey business enterprises that work within the constructs of the laws and ordinances of the tribes.
On December 11, 2014, the Department of Justice announced that Native American tribes can grow or sell marijuana on their lands as long as they comply with the federal conditions laid out for states that have legalized medical marijuana and medical marijuana infused products.
There are more than 560 federally recognized Indian Tribes in the US, spread over 33 states, and over 100 of them are located in California. FoxBarry is currently planning programs to serve North, Central and Southern California, and has pledged $30 million to establish the initial three sites. United Cannabis will work directly with FoxBarry to develop ordinances that comply with the various statutes in Colorado, California and Washington State as well as Federal guidelines.
According to the National Organization for the Reform of Marijuana Laws (NORML), there are approximately 550,000 medical marijuana patients currently registered in California. With just over 1 million registered patients throughout the US, California represents well over half of the entire market.
Earnest Blackmon, Chief Executive Officer of United Cannabis, commented on the announcement, "What a great way to start the New Year. This partnership alone gives us access to more than half of all registered marijuana patients in the country. When you factor in Colorado and our affiliates in Nevada, we have the potential to reach nearly two thirds of the registered patients in the US; the opportunity is enormous."
Working with FoxBarry, the Company intends to establish United Cannabis as a premier brand with the State's medical cannabis patients. The first program will be established in Northern California, with ground breaking to occur in the next 30 days, and operations to begin in February of this year.
AI
