BARRIE,
ON, July 27, 2022 /PRNewswire/
- MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ)
("MediPharm", "MediPharm Labs" or the "Company") a pharmaceutical
company specialized in precision-based cannabinoids, today
announced that it has been awarded a favourable summary of
judgement in the Ontario Court of
Justice in connection with a supply agreement dispute in the amount
of $9.8M.
On January 24, 2020, MediPharm
Labs filed a statement of claim ("Claim") in the Ontario Superior
Court of Justice against one of its long-term customers of cannabis
concentrates. The Claim related to, among other things, the payment
of outstanding amounts due to the Company for products shipped to
and received by the customer and deposits owed to the Company for
committed amounts not yet shipped.
On February 26, 2020, the
defendant in the Claim filed a statement of defense and
counterclaim. The Ontario Court of
Justice has dismissed this counterclaim.
This summary judgement and subsequent payment, and recent
conditional sale of the Company's Australian facility, will add
over $16M in cash, strengthening the
balance sheet.
Management Commentary
David Pidduck, CEO of
MediPharm Labs commented, "In the early days of the nascent
cannabis industry many companies faced risks in collecting large
receivables. This summary judgement will allow us to collect this
$9.8M, which will dramatically
strengthen our balance sheet. MediPharm now has many customers
across multiple channels and our accounts receivable are healthy.
The collection of this cash will significantly improve MediPharm's
cash position and give us flexibility to consider M&A
opportunities."
About MediPharm Labs
Founded in 2015, MediPharm Labs specializes in the development
and manufacture of purified, pharmaceutical-quality cannabis
concentrates, active pharmaceutical ingredients (API) and advanced
derivative products utilizing a Good Manufacturing Practices
certified facility with ISO standard-built clean rooms. MediPharm
Labs has invested in an expert, research driven team,
state-of-the-art technology, downstream purification methodologies
and purpose-built facilities with five primary extraction lines for
delivery of pure, trusted and precision-dosed cannabis products for
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-based products to domestic and international
markets.
In 2021, MediPharm Labs received a Pharmaceutical Drug
Establishment Licence from Health Canada, becoming the only company
in North America to hold a
domestic Good Manufacturing Licence for the extraction of natural
cannabinoids. The Company carries out its operations in compliance
with all applicable laws in the countries in which it operates.
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, statements regarding: collection of the
court award, the need to raise capital through equity or debt
vehicles, and MediPharm's ability to execute M&A opportunities
in the future. Forward-looking statements are necessarily based
upon several 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; the delay or failure to receive regulatory
approvals; and other factors discussed in MediPharm Labs' filings,
available on the SEDAR website at www.sedar.com. 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.
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SOURCE MediPharm Labs Corp.