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British American Tobacco (BAT) and cannabis wellness company Charlotte’s Web have formed a new joint venture (JV) to pursue approval from the US Food and Drug Administration (FDA) for a new hemp-based drug that will target an undisclosed neurological condition.
BAT will use its subsidiary AJNA BioSciences, a developer of botanical drugs for mental health and neurological conditions, to invest $10m in the partnership, which grants the tobacco group a 20% stake in the JV as well as the right to participate in future equity issuance to keep its pro-rata equity interest position. The remaining 80% of the JV’s shares will be divided between AJNA and Charlotte’s Web.
