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IntelGenx Signs LOI With Tilray To Produce Cannabis-Infused VersaFilm Products

IntelGenx Corp. (IGX.V, IGXT.OB), an oral drug delivery company, announced Thursday that it has executed a non-binding letter of intent or LOI with Tilray, Inc. (TLRY), a cannabis research, cultivation, production and distribution company, to enter into a world-wide agreement to produce cannabis-infused VersaFilm products.

The LOI also contemplates that, at the time of entering into the definitive agreement, Tilray will make a strategic investment in IntelGenx by way of a non-brokered private placement. Tilray will purchase 1.25 million shares of IntelGenx at a price of $0.80 per share, which is equal to the five-day volume weighted average closing price of IntelGenx' common stock on the OTCQX for the period ended September 18.

IntelGenx intends to use the proceeds from the Private Placement for cannabis-infused VersaFilm product development in connection with the LOI. The Private Placement will be subject to the approval of the TSX Venture Exchange.

The companies plan to co-develop and commercialize oral film products infused with recreational and medical cannabis,in anticipation of amended cannabis regulations which would allow adult-use consumers to purchase edible products.

Pursuant to the LOI, subject to entering into a definitive agreement and the satisfaction of customary closing conditions, IntelGenx and Tilray will fund 20% and 80% of the costs associated with the development of the cannabis-infused VersaFilm products, respectively.

IntelGenx will have rights to manufacture and supply the co-developed products to Tilray, and will also receive a fixed single-digit royalty on net product sales. Tilray will have the exclusive, worldwide marketing and distribution rights for the co-developed products.

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