MediPharm Labs Signs New Cannabis Oil Agreements and Completes First Shipments of Supply in December
TORONTO, Jan. 16, 2019 (GLOBE NEWSWIRE) — MediPharm Labs Corp. (TSXV: LABS; OTCQB: MLCPF) (the “Company” or “MediPharm Labs”), the leader in specialized, research-driven cannabis extraction, fully licensed under the Cannabis Act (Canada) focused on downstream secondary extraction methodology, distillation, and cannabinoid isolation and purification, is pleased to announce it has signed three cannabis oil sales agreements, subsequent to the Company’s receipt of its sales license from Health Canada on November 9, 2018. The first large shipments of cannabis oil supply left the Company’s dock in December 2018 and were aggregately valued at over $10 million.
As a pioneer in the cannabis industry, MediPharm Labs has emerged as the clear leader in the extraction-only category, highlighted by our first month of sales agreements of white label high-quality purified cannabis oil concentrates. This milestone further validates the strength of our differentiated model as a complement and partner to vertically integrated licensed producers while also demonstrating the potential for MediPharm to rank alongside the top revenue generating cannabis companies in the industry.
Mr. Patrick McCutcheon, Chairman, President and Chief Executive Officer of MediPharm Labs
“Looking ahead to 2019, we continue to build on our momentum as MediPharm is increasingly being recognized as the supplier of choice for high-quality purified cannabis oil as well as for toll processing, particularly among mid-to-large-sized vertically integrated licensed producers, and we see a clear path for continued and sustainable growth in 2019 and beyond. We look forward to further accelerating growth through the multitude of substantial contracts already in place and robust pipeline of new opportunities, which will be further enhanced in the near future upon receiving full cGMP producer certification and opening up additional international opportunities.”
MediPharm Labs’ strong momentum has continued into 2019 with several significant accomplishments to support its continued growth as the leader in specialized, research-driven cannabis extraction business designed for large scale commercial production. Highlights include:
Processed and sold large quantities of cannabis oil inventory under its white label program. Has since acquired large volume of dried cannabis to ensure uninterrupted supply of oil for existing and new customers. Deep industry relationships and proactive supply chain management have secured over 1,600kg of cannabis flower and trim over a 3-week period from 7 different licensed producers (“LPs”). The Company has now made supply purchases from 13 LPs and is continuing to procure additional supply to meet strong demand.
Executed multiple long-term tolling agreements with 6 LPs under Cannabis Concentrates Program under which it has received large quantities of dried cannabis for processing. In addition to the current arrangements in place, the Company has a robust pipeline of new opportunities which are under evaluation and/or negotiation.
Initial extraction capacity of 100,000 kg of dried cannabis was increased by 50% to an industry leading capacity of 150,000 kg as approved by Health Canada December 24, 2018. (This total capacity equates to 29.1 million vape pen cartridges equivalent). Continued expansion plans are underway to support growing demand for cannabis oils, the fastest growing segment of the cannabis industry.
About MediPharm Labs Corp.
Founded in 2015, MediPharm Labs 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 its cGMP (current Good Manufacturing Practices) and ISO standard-built 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 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. MediPharm Labs was awarded Start-Up Of The Year at the recent Canadian Cannabis Awards hosted by Lift & Co.
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.