With legalization on the horizon, one of Canada’s biggest producers of beer is getting in on the action.

Molson Coors Canada has entered into an agreement with The Hydropothecary Corporation (HEXO) to develop a non-alcoholic, cannabis-infused beverage for the Canadian market.

It will be structured as a standalone startup company with Molson controlling 57% of the joint venture and HEXO controlling the remaining ownership interest.

Photo Credit: Molson Canadian

The product won’t be available until edibles become legally permissible in Canada, which isn’t expected to be until 2019.

"While we remain a beer business at our core, we are excited to create a separate new venture with a trusted partner that will be a market leader in offering Canadian consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages,” said Frederic Landtmeters, president and CEO of Molson Coors Canada.

The transaction is expected to close before Sept. 30, 2018, but it subject to the satisfaction of certain conditions.

That includes execution and delivery of various transaction agreements, including governance document as well as R&D and supply agreements.

It’s also subject to the final approval of the Toronto Stock Exchange, which will need HEXO to issue Molson warrants to purchase its shares.