eSense-Lab (ASX:ESE) is entering the lucrative North American cannabis food and beverage market through an agreement with U.S. food manufacturer Healthy Chocolate Florida LLC (HCF).
HCF is a specialty nutrition, chocolate and chocolate-based nutritional supplements company with in-house research and development capabilities.
Under the terms of the agreement, eSense and HCF will collaborate in the development and marketing of terpene and chocolate based controlled dietary supplements.
Terpenes are organic compounds found in plants responsible for flavour and fragrance, along with many health and medical benefits.
Headquartered in Israel, esense has developed a proprietary plant profiling technology that can reconstruct the terpene profile of plants, using alternate natural sources.
eSense is aiming to develop a new multi-format and platform brand of terpene-based products with HCF to provide the manufacturing and top-tier third party U.S. branding and marketing.
As per the agreement, each party will retain its respective intellectual property (IP), with consideration to share any future jointly developed IP.
eSense will also have the opportunity to be a supplier of its unique terpene compounds to other HCF brands and clients for the purposes of formulating their own consumable products and supplements.
Last month, eSense commenced the delivery of its first commercial order to U.S. electronic vaporizer company Allor Vaporizers.
The shipment comprised of a selection of eSense’s 10 medical cannabis terpene profiles including profiles of five of the world’s most popular medical cannabis strains.
U.S. retail cannabis sales in 2016 experienced a record growth to circa US$4.5 billion, and the sector is expected to grow a further 30%, to circa US$6.1 billion in 2017.