The two companies have signed a scientific collaboration agreement covering areas of future R&D
Global ingredient manufacturer Open Book Extracts (OBX) has announced the completion of its Series C financing round.
The funding secured could total between US$20-$25m, depending on the achievement of certain milestones.
The second close of the round, the first part of which completed earlier this year, was led by the corporate venture unit of British American Tobacco (BAT) – Btomorrow Ventures (BTV). The investment will support ongoing research efforts at OBX, including toxicology, safety, and efficacy research on cannabinoid ingredients and finished products, leveraging OBX’s broad range of cannabinoids from hemp and natural sources, including CBD, CBN, CBC, CBG, CBT, CBDa, CBGa, CBDv, and THCv.
OBX and BAT have also signed a scientific collaboration agreement covering certain areas of future R&D. The potential activities to be undertaken under the collaboration will focus on next generation cannabinoid ingredients and may in the future include a review of the potential effects and health benefits, and formulation science across product formats.
“Innovation is the cornerstone of OBX’s strategy, and the investment from and collaboration with BAT will accelerate the pace of innovation by orders of magnitude,” said Dave Neundorfer, OBX’s CEO.
This is a tremendous milestone in our continued focus on developing products that work for the brands who care.
“In BAT, we have found the ideal strategic partner who brings sophisticated management, innovative product platforms, an impressive dedication to research and development, deep consumer insights, and regulatory expertise. This is a tremendous milestone in our continued focus on developing products that work for the brands who care.”
OBX further offers concept-to-market formulation, product development, and manufacturing services for their global customers, leveraging superior water soluble technology and unique delivery mechanisms to develop a wide range of finished goods, from core gummies, softgels and tinctures, to beverages, tablets and aerosol sprays. The company also maintains a valuable IP portfolio with a focus on rare cannabinoids, utilising a data-driven approach to identify the largest therapeutic opportunities to drive research and product development activities.
With control of the entire supply chain, proprietary refinement and conversion methods backed by a growing IP portfolio, and a team of chemists and seasoned business leaders, OBX is the trusted partner for global brands seeking to enter the marketplace. OBX offers concept-to-market formulation and manufacturing services, leveraging a broad portfolio of cannabinoid ingredients, leading water soluble technology and unique delivery mechanisms.
BTV is the corporate venturing unit of BAT. Established in 2020, BTV invests in high growth businesses, from seed funding to those looking for further, series B investment. BTV's focus is to invest in world-class entrepreneurs with innovative products and differentiating technologies.