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.
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.”
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 Canadavia 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.
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.