TORONTO, Oct. 10, 2018 (GLOBE NEWSWIRE) — MediPharm Labs Corp. (“MediPharm”) (TSXV: LABS) is pleased to announce that it has entered into a Cannabis Concentrate Program Agreement (the “Agreement”) with Emerald Health Therapeutics Inc. (“Emerald”) (TSXV: EMH – OTCQX:EMHTF). Pursuant to the Agreement, signed on October 5, 2018, Emerald will provide MediPharm with dried cannabis to create premium quality cannabis oil (the “Program”). The Program will be for an initial term of three years.
The Agreement enables Emerald to provide pharmaceutical grade cannabis concentrate products produced by MediPharm to its large base of registered patients, as well as provide adult-use recreational consumers with premium quality cannabis concentrates commencing October 17, 2018.
MediPharm is research-driven and focused on downstream secondary extraction methodology, distillation and cannabinoid isolation and purification. MediPharm currently operates one of the largest cannabis concentrate manufacturing facilities in Canada and is built to cGMP (current Good Manufacturing Practices) and ISO standards. Leveraging MediPharm’s proprietary pharmaceutical manufacturing expertise, the company’s purpose-built state of the art centre of excellence currently has the capacity to process over 100,000kg of dry cannabis a year at their wholly owned ACMPR-licensed facility. With Phase 2 funded and scheduled to be completed by the end of Q2 2019, MediPharm Labs processing capacity is anticipated more than double to an expected 250,000kg annually.
Emerald is a Licensed Producer under Canada’s Access to Cannabis for Medical Purposes Regulations and produces and sells dried cannabis and cannabis oil for medical purposes. Emerald is preparing to serve the fully legalized Canadian adult-use cannabis market starting October 17, 2018. Emerald owns 50% of Pure Sunfarms, which is converting a licensed existing 1.1 million square foot greenhouse in Delta, BC and is now in commercial production. Emerald also owns Agro-Biotech, a Québec-based licensed cannabis grower with a 75,000 square foot indoor facility which is planning to add a 500,000 square foot greenhouse in Metro Vancouver.
This is truly a partnership of two leaders in the Canadian cannabis industry. This Program represents the advancement of a market to better serve cannabis consumers and patients.
Under the Agreement, Emerald will ship dried cannabis to MediPharm which MediPharm will use to produce purified cannabis oil. The parties intend that under the Program, MediPharm may provide cannabis oil to Emerald or to other approved distributors of medical cannabis at the direction of Emerald. Alternatively, Emerald may release the cannabis extract for use by MediPharm. The Program will be established at no capital cost to Emerald, however, MediPharm will charge Emerald a processing fee for the cannabis oil produced and the revenue earned on sales of cannabis oil by MediPharm will be shared between MediPharm and Emerald.
“We are very pleased to have MediPharm as our partner,” said Rob Hill, CFO of Emerald. “Their large processing capacity and ability to produce high purity cannabis extracts and isolates increases our flexibility and capabilities in bringing to market high-value and unique products.”
We are very excited to begin this relationship with one of Canada’s leading cultivators. This partnership further highlights MediPharm’s commitment to work as a trusted, agnostic value add supplier to Licensed Producers across Canada to better serve the cannabis market.
Pat McCutcheon, MediPharm’s President and Chief Executive Officer
Our geographic location also serves as a strategic asset to the relationship with our ability enable Emerald to provide their consumers in central and eastern Canada with premium quality pharmaceutical grade cannabis oil.
About MediPharm Labs Corp.
MediPharm Labs, through its subsidiary, is a pioneer in the cannabis industry and has the distinction of being the first company in Canada to become a licensed producer for cannabis oil production under the Access to Cannabis for Medical Purposes Regulations (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 work with its established, Health Canada-approved cultivation partners to produce pharmaceutical-grade cannabis oil with a competitive advantage. MediPharm Labs is research-driven and focused on downstream secondary extraction methodology, distillation, and cannabinoid isolation and purification. MediPharm Labs, through its subsidiary, provides B2B contract processing of cannabis to Canadian authorized licensed producers and appropriate international growers, supplying integrity-assured cannabis oil to qualified companies for sale under their own brand. In addition,
MediPharm Labs will supply raw materials, formulations, processing and packaging for the creation of ready-to-sell advanced derivative products. 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 additional information about MediPharm Labs, please see the company’s website: www.medipharmlabs.com