TORONTO, April 01, 2019 (GLOBE NEWSWIRE)
MediPharm Labs Corp. (TSXV: LABS) (OTCQB: MLCPF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven cannabis extraction, distillation, purification and cannabinoid isolation, is pleased to announce that its wholly owned subsidiary, MediPharm Labs Inc. (“MediPharm”), has entered into purchase agreements with multiple cultivators, successfully acquiring over 5,000 KG of dried cannabis supply in the last two weeks of March 2019.
In addition to MediPharm’s ongoing monthly procurement strategy, this large volume purchase of dried cannabis supply strategically positions the Company to significantly increase sales of cannabis concentrates.
“With our extensive network of cultivation partnerships, we continue to secure and purchase increasing volumes of additional dried cannabis supply to further boost our sizeable inventory of high-quality pharma-grade cannabis oil,” said Patrick McCutcheon, Chief Executive Officer of MediPharm Labs.
“As extraction specialists, we are diligently executing on ramping up operations ahead of the legalization of concentrates-based vapeables, topicals and edibles this fall, and for our upcoming EU GMP certification, that we expect will significantly increase the size of our addressable market. We continue to aggressively build our inventory to enhance sustainable, uninterrupted high-margin private-label production and maintain our leadership position in the global cannabis industry value chain.”
MediPharm Labs Launches White-Label Solutions Platform
MediPharm Labs is also pleased to announce the launch of its White Label program as it ramps up operations well in advance of the next evolution of the Cannabis Act in Canada, including the expected legalization of derivatives and edible products in the fall of 2019. With the pending legalization of vapeables, edibles, beverages and topicals, the Company anticipates a significant increase in its addressable market that will also act as a catalyst to encourage various direct-to-consumer brands and non-cannabis consumer packaged goods companies to seek partners like MediPharm Labs.
Through its existing and growing platform, the Company will provide a full-service solution including formulation, processing, packaging and distribution, to bring new and well-established brands to fulfill growing consumer demand. MediPharm signed its first white-label customer and looks forward to providing several updates over the coming months as it continues active discussions with new partners through its large, rapidly growing sales pipeline.
The Company has continued to grow its team of extraction specialists in the areas of science, technology, production, supply chain, regulatory affairs and business development. As a result, the Company also announced that its Board of Directors has approved a grant of stock options under its stock option plan to purchase an aggregate of 791,000 common shares in the capital of the Company (“Shares”) at an exercise price of $3.34 per Share, being the closing price of the Shares on the TSX Venture Exchange on March 29, 2019, for a five-year term expiring March 29, 2024.
Each grant vests in five equal instalments, the first of which vests immediately with the four other instalments vesting on the dates which are six, twelve, eighteen and twenty-four months from the grant date. The stock options were granted to employees of the Company and are subject to any necessary regulatory approvals. MediPharm Labs includes options as part of its compensation to all employees, building a corporate culture aligned for the long-term with shareholder value.
About MediPharm Labs Corp.
Founded in 2015, MediPharm Labs has the distinction of being the first company in Canada to become a licensed producer for cannabis oil production under the ACMPR without first receiving a cannabis cultivation licence. This expert focus on cannabis concentrates from our cGMP (current Good Manufacturing Practices) and ISO standard clean rooms and critical environments laboratory, allows MediPharm Labs to produce purified, pharmaceutical-grade cannabis oil and concentrates for advanced derivative products.
MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream extraction methodologies and purpose-built facilities to deliver pure, safe and precisely-dosed cannabis products to patients and consumers. MediPharm Labs’ private label program is a high margin business for the Company, whereby it opportunistically procures dry cannabis flower and trim from its numerous product supply partners, to produce proprietary cannabis oil concentrate products for resale globally on a private label basis.Through its subsidiary, MediPharm Labs Australia Pty. Ltd., MediPharm Labs has also completed its application process with the federal Office of Drug Control to extract and import medical cannabis products in Australia.
For further information, please contact:
Laura Lepore, Vice President, Investor Relations & Communications
Telephone: 705-719-7425 ext 216
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXV) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, expectations of significantly increased sales and market size, expected product offerings, expected GMP certification and the establishment of operations in Australia. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm Labs to obtain adequate financing; and the delay or failure to receive regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm Labs assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.