UNITED CANNABIS CORP : Entry into a Material Definitive Agreement (form 8-K)
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01/29/2018 | 06:06am EST
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On January 24, 2018 the Company entered into a non-exclusive licensing agreement with an affiliate of Harborside Health Association LLC.
The license provided Harborside with the rights to the Company's technology which will enable Harborside to manufacture and distribute its proprietary line of products. In consideration for the license, Harborside will pay the Company the greater of:
o 5% of the gross price paid by Harborside for the manufacture of the
products; or
o 2.5% of the wholesale price received by Harborside from the sale of
the products.
For purposes of the agreement, the "wholesale price" for any product means the gross price obtained by a distributor licensed by Harborside from the sale of any products in an arm's length transaction with another distributor or retailer, excluding cannabis tax payments for remittance to taxing authorities; and, for non-arm's length sales, the average price which could have been obtained in an arm's length transaction.
The technology licensed to Harborside covers the Company's patented methods of extracting, preparing and using cannabis.
The agreement has a term of three years.
