Ottawa-based CannaRoyalty forms joint venture on concussion therapy

Medical marijuana

An Ottawa pot-focussed holding firm is contributing research to cannabis-based concussion therapies through a joint venture with a Canadian pharmaceutical company.

CannaRoyalty (CSE:CRZ), which finances and invests in marijuana companies, said Thursday it would put its 10-per-cent equity stake in Bodhi Research and Development into a collaboration with Aequus Pharmaceuticals (TSX-V:AQS) in exchange for partial ownership of the venture.

The firms say they’re forming this partnership alongside Canadian physicians to advance cannabis-based therapies for neurological disorders, specifically in the treatment of concussions. Bodhi has already conducted research trials on the effects of cannabis on concussions and post-concussion syndrome.

“We see a significant opportunity for validated, research-based data regarding cannabinoid-based treatments and commend the group at Bodhi for the progress they have made to date,” said CannaRoyalty CEO Marc Lustig in a statement.

“In the near-term, the (joint venture) will provide Bodhi with the drug development and commercial expertise to progress its research toward further validation and commercialization.”

Lustig added that he will commit “significant personal capital” into the joint venture as a lead third-party investor.

Shares of CannaRoyalty were trading at $4.49 on the Canadian Securities Exchange at midday, down nearly 5.5 per cent. The firm’s stock hit its all-time high last week with the legalization of recreational cannabis in California, but ensuing legal confusion in the U.S. market dragged on the firm’s share price.