Cann Group has "positively progressed" commercial negotiations with GlaxoSmithKline's consumer healthcare division, Haleon, over the potential sale and distribution of over-the-counter CBD in Australia.
The two companies initially entered an "evaluation and option" agreement in April, with Haleon also examining the commercial potential of marketing Cann's Satipharm CBD capsules across international markets.
The parties have since signed a non-binding term sheet that sets out proposed milestone payments, sales-related payments, and manufacturing margins to be paid to Cann.
The updated agreement also confirms plans to grant Haleon exclusive negotiating rights over the commercialisation of Satipharm internationally.
A final commercial agreement will hinge on the successful outcome of Cann's phase III trial for sleep disturbance, with results expected early next year.
Chief operating officer Shane Duncan has previously said that a deal with Haleon "hangs on a positive clinical trial result and the ability to get the product registered".
