TORONTO, Oct. 25,
2023 /PRNewswire/ - MediPharm Labs Corp. (TSX: LABS)
(OTCQB: MEDIF) (FSE: MLZ) ("MediPharm", "MediPharm Labs" or the
"Company") a company specialized in precision-based cannabinoids,
is pleased to announce it has now received $7.27 Million in gross cash proceeds from the
settlement agreement announced on October 2, 2023 (the
"Settlement Agreement") to resolve a claim in connection with
a commercial agreement dispute. Additional consideration includes
products and services described below.
On October 2, 2023 MediPharm and
Tilray came to a mutually agreeable resolution and established a
long-term supply relationship. Following the Settlement Agreement,
MediPharm has now received $7.27
Million in cash consisting of:
- $3 Million cash payment.
- 1,573,152 total Tilray common shares that have been sold for
gross proceeds of $4.27 Million.
Non-cash elements also included in the Settlement Agreement are
ongoing product considerations:
- § $1,000,000 in Tilray products
(including but not restricted to high-quality flower and
extractable biomass).
- § $500,000 four-year supply
agreement to provide Tilray with MediPharm products and
services.
MediPharm has already started working closely with Tilray
management to add MediPharm Labs products to Tilray's Medical
platform, and to qualify the most appropriate products to be
sourced from Tilray.
The long-term supply agreement allows MediPharm to establish a
positive ongoing business relationship with a global leader in the
cannabis industry. This supply agreement allows Tilray to access
MediPharm's unique pharmaceutical products and services both
domestically and internationally, including products produced under
the Company's US FDA Foreign Drug Site registration and Canadian
Drug Establishment License
This non-dilutive cash infusion further strengthens the
Company's balance sheet. MediPharm's cash balance as of
October 20, 2023 was approximately
$19.5 Million. In addition, MediPharm
has less than $3M of debt and full
ownership of its assets. Management believes this gives MediPharm a
very strong position to continue to invest in the pharmaceutical
and clinical pipelines, and to thoughtfully consider approaches to
the many available consolidation opportunities in the industry.
Management Commentary
David Pidduck, CEO of
MediPharm Labs commented, "With a Q2 burn rate of about
$3M per quarter, and this recent cash
settlement, we are now in an even stronger position to consider
organic and inorganic growth investments."
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 for delivery of pure, trusted and
precision-dosed cannabis products for its customers. MediPharm Labs
develops, formulates, processes, packages and distributes cannabis
and advanced cannabinoid-based products to domestic and
international medical markets.
In 2021, MediPharm Labs received a Pharmaceutical Drug
Establishment License from Health Canada, becoming the only company
in North America to hold a
commercial scale domestic Good Manufacturing License for the
extraction of multiple natural cannabinoids. The Company carries
out its operations in compliance with all applicable laws in the
countries in which it operates.
In 2023, MediPharm acquired VIVO Cannabis Inc. which expanded
MediPharm's reach to medical patients in Canada via Canna Farms medical ecommerce
platform, and in Australia and
Germany through Beacon Medical PTY
and Beacon Medical GMBH. This acquisition also included Harvest
Medical Clinics in Canada which
provides medical cannabis patients with Physician consultations for
medical cannabis education and prescriptions.
Website: www.medipharmlabs.com
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, access to MediPharm's unique pharmaceutical
products and services both domestically and internationally,
MediPharm's very strong position to continue to invest in the
pharmaceutical and clinical pipelines and its position to consider
organic and inorganic growth investments, future marketable
pharmaceutical products, and future Canadian and international
commercial products that leverage MPL's unique Pharma
expertise.
Forward-looking statements are necessarily based upon a number
of 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.