MediPharm Labs Reaches $6.2M Purchase Agreement for Sale of Australian Facility
BARRIE, ON, July 11, 2022 /CNW/ – MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”), a precision cannabinoid specialty pharmaceutical company, has entered into a share purchase agreement (the “ Agreement”) with OneLife Botanicals PTY (“OneLife Botanicals”) for the sale of MediPharm Labs Australia Pty Ltd (“MPLA”), a wholly owned subsidiary of the Company, for a minimum value of $6.9M EUR ($6.2M BOJAT). The deal is subject to routine conditions and is expected to close within 90 days.
The agreement includes MPLA assets, specialist licenses, operational knowledge and New Zealand customers currently served from this facility. All international contracts except Australia and New Zealand will remain with MediPharm Labs and will be serviced from our Barrie GMP facility.
In July 2021, MediPharm Labs was the first purpose-built cannabis establishment to receive a Pharmaceutical Drug Establishment License. Awarded by Health Canada, this license is recognized in more than 50 countries under the Pharmaceutical Inspection Co-operation Scheme (PIC/S). Currently, the Company has completed the review of its international manufacturing platform and has identified significant potential cost savings by moving all domestic and international manufacturing to the Canadian facility.
After a lengthy sales process, the deal with OneLife Botanicals was identified as a strategic fit for both parties. OneLife Botanicals is an emerging leader in Australia region for wellness and medical cannabis products, with plans to launch OTC CBD products across Australia. Purchase of MPLA facility accelerates commercialization of OneLife Botanicals. The company and OneLife Botanicals will also enter into a transition services agreement to allow the two companies to smoothly transition products and services produced at the facility and work together on future business opportunities.
David PidduckMediPharm Labs CEO commented“This sale represents a major milestone for MediPharm Labs, which continues to focus on right-sizing the business to achieve profitability. As we seek to maintain our strong cash balance, this transaction, coupled with the restructuring of the business completed in June 2022 should enable us to reduce our quarterly burn rate as we improve our sales.
I would like to personally thank our Australian team. This group of professionals are pioneers in the Australian and international medical cannabis market, reaching milestones such as the launch of several customer products and our first deliveries to Germany. OneLife Botanicals wins one of the most skilled medical cannabis manufacturing teams in Australia.”
OneLife Botanicals CEO Andrew Grant said“This purchase aligns and accelerates our organization’s strategic goal of producing high-quality medical cannabis products by integrating manufacturing into the end-to-end supply chain. The integration of a fully operational facility advances our objectives of taking our products and our brand to the market.
Our company has undertaken extensive research in preparation for this significant acquisition and is very confident in the capabilities and ability of the operation to manufacture products to all compliance and quality standards.
Integrating this business with our existing cultivation facility facilitates capital investment savings, access to operational efficiencies and establishes us as a significant supplier to the Australian medicinal cannabis industry.
We intend to build on the existing customer base and develop additional product distribution opportunities to become a formidable player in the market.”
About MediPharm Laboratories
Founded in 2015, MediPharm Labs specializes in the development and manufacturing of pharmaceutical grade purified cannabis concentrates, active pharmaceutical ingredients (APIs) and advanced derivative products using a certified Good Manufacturing Practices facility with compliant clean rooms. ISO standards. MediPharm Labs has invested in an expert research-driven team, state-of-the-art technology, downstream purification methodologies, and purpose-built facilities with five main extraction lines for the delivery of pure, reliable, and dosed cannabis products. accurately to its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid products in national markets and international. In 2021, MediPharm Labs received a Pharmaceutical Drug Establishment License from Health Canada, becoming the only company in North America hold a national good manufacturing license for the extraction of natural cannabinoids. The Company conducts its business in compliance with all applicable laws in the countries in which it operates.
About OneLife Botanicals
Onelife Botanicals is a niche producer of medicinal cannabis in melbourne, Australia. The company has a passion for developing and producing products that deliver a range of health benefits and help treat a range of specific health conditions.
The company operates an existing cultivation site with extensive infrastructure, including purpose-built greenhouses for growing medicinal cannabis in a controlled environment. Greenhouses facilitate an optimal growing environment through temperature and climate control, maximizing natural sunlight in a protected and secure environment.
Administrators and stakeholders focus on identifying and exploring market opportunities, as well as adopting innovation in production processes. The company’s success can be achieved through an extensive research and development program, aimed at staying ahead of changes in cultivation methods, technological solutions and product applications, as well as automation advancement ensuring that we minimize operating expenses and maximize quality control.
The organization is committed to making the health benefits of this natural and powerful herb available to anyone looking to improve their health. A life.
CAUTION REGARDING FORWARD-LOOKING INFORMATION:
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements, other than statements of historical facts, are forward-looking statements and are based on expectations, estimates and projections as of the date of this press release. Any statement involving discussion of predictions, expectations, beliefs, plans, projections, goals, 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”, “budgets”, “expects”, “expects”, “estimates”, “believes ” or “intends” or variations of these words and expressions or indicating that certain actions, events or results “might” or “may”, “will”, “could” or “will” be expected to occur or be achieved ) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based on various estimates and assumptions which, although believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially. of those expressed or implied by such forward-looking statements. These factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to close the Agreement within 90 days; the ability for MediPharm Labs to realize cost savings by moving all manufacturing to the Canadian facility; and the potential for MediPharm Labs to significantly reduce quarterly burn rate or improve sales. 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 press release. Except as required by law, MediPharm Labs assumes no obligation to update any forward-looking statements of beliefs, opinions, projections or other factors, should they change.
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SOURCE MediPharm Labs Corp.
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