TORONTO, June 27, 2019 (GLOBE NEWSWIRE) — MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (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., has entered into purchase agreements to secure a substantial 9,000 KG of dried cannabis supply from multiple cultivators in the last three weeks in June. In addition to MediPharm Labs’ ongoing procurement of cannabis biomass for existing contracts, this bulk purchase is expected to contribute to increased production for future sales and position the Company to meet the mandatory minimum monthly volume requirements to win new large white-label contracts.
At the half year mark in 2019, and only seven months since receiving its sales license, MediPharm Labs has expanded its cultivation relationships to secure and scale up its own supply of dried cannabis that has also increased the total market supply of cannabis concentrates for white label, value-add products including bottled oil, gel caps and upcoming vape pen devices to be legalized later this year.
With the increasing availability of bulk supply and our ongoing dried cannabis supply purchases, we are well positioned to significantly increase quarterly production over and above our existing contracts, which we expect to translate into additional sales from new white-label contracts that require substantial volumes monthly.
Patrick McCutcheon, Chief Executive Officer of MediPharm Labs
As the industry continues to mature, with additional cultivation supply sources coming online, we continue to focus on building on our specialized extraction skill set to provide a stable source of high quality, cannabis concentrates for the growing demand of value-add concentrate based products for medical and recreational consumers.
“We look forward to further diversifying relationships with new cultivation partners, including outdoor grows, who continue to focus on producing high quality active cannabinoid flower at lower costs over the long term.”
For further information, please contact:
Laura Lepore, VP, Investor Relations
Telephone: 705-719-7425 ext 216