Peak Pharmaceuticals, Inc., announced the termination of its licensing agreement with Canna-Pet, LLC.
The two parties entered into a license agreement, dated July 29, 2014, to use the Canna-Pet brand name and related intellectual property to produce and sell pet health products made from hemp plants. The agreement provides that it may be terminated at any time by mutual agreement of the parties. Pursuant to and in accordance with the terms of the agreement, both parties have agreed to terminate the license agreement effective as of October 1, 2015.
Accumulating market information from sales and marketing activities, combined with recent regulatory events, has led the Company to reassess its long-term commitment to the veterinary marketplace and to reaffirm its dedication to the development of hemp based health products for the human market.
Dr. Soren Mogelsvang, President and CEO of Peak Pharmaceuticals, states, “During the course of the agreement we gained extraordinary insights into the manufacturing, sales and marketing of cannabinoid products in America today. The state of the regulatory framework underpinning the veterinary marketplace continues to present significant challenges, but at the same time holds great promise for those willing to manage within these evolving confines. The consumer base is clearly evident and the fact we took a relatively unknown product and transformed it into a sector leading brand with a million dollars in gross sales validates the scope of the opportunity.”
“For our part, we intend to take our real world experience from the growing hemp product sector and put it to use as we move towards areas of the human marketplace where we believe great gains can be more readily achieved through dedicated development efforts,” continues Dr. Mogelsvang. “As such, we have initiated discussions with potential strategic partners, and we will continue to make appropriate public announcements as we make strides towards the launch of new hemp based product lines for the human health markets.”
