BARRIE, October 7, 2022 – MediPharm Labs Corp.(TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a pharmaceuticalcompany specialized in precision-based cannabinoids, completed the saleof MediPharm Labs Australia Pty (“MediPharm Labs Australia”), a fully owned subsidiaryof the Company, for a value of $7.25M AUD ($6.3M CAD) (the “Sale”). Thesale was completed with OneLife Botanicals PTY (“OneLife Botanicals”) effectiveOctober 6, 2022.
The Sale, as previously announced on July 11,2022, includes the assets of MediPharm Labs Australia, specialized licensing,operational knowledge, and Australian and New Zealand customers currentlyserved from that facility. All international contracts outside of Australia andNew Zealand will remain with MediPharm Labs Corp. and be serviced from theMediPharm Labs Barrie GMP facility.
After an extensive sale process, the Agreementwith OneLife Botanicals wasidentified as a strategic fit for both parties. OneLife Botanicals is an emerging leader in the Australia regionfor cannabis-based wellness and medical products, with plans to launch OTC CBDproducts across Australia. Purchasing the MediPharm Labs Australia facility expediatesOneLife Botanicals’ timingto commercialization.
ManagementCommentary:
DavidPidduck, CEO of MediPharm Labs
"The sale of the MediPharm LabsAustralia assets improves the Company’s cash position while also reducing ourcash burn. This additional non-dilutive capital allows us to continue ourinitiative to right-size our company and become profitable through organic andinorganic growth.
I want topersonally thank our Australian team for their dedication and professionalismthrough the closing of this sale. I wish them and OneLife Botanicals muchsuccess in their future business pursuits.”
About MediPharmLabs
Founded in 2015, MediPharm Labs specializesin the development and manufacture of purified, pharmaceutical-quality cannabisconcentrates, active pharmaceutical ingredients (API) and advanced derivativeproducts utilizing a Good Manufacturing Practices certified facility with ISOstandard-built clean rooms. MediPharm Labs has invested in an expert, researchdriven team, state-of-the-art technology, downstream purification methodologiesand purpose-built facilities for delivery of pure, trusted and precision-dosedcannabis products for its customers. MediPharm Labs formulates, develops(including through sensory testing), processes, packages and distributescannabis extracts and advanced cannabinoid-based products to domestic and internationalmarkets. In 2021,MediPharm Labs received a Pharmaceutical Drug Establishment Licence from HealthCanada, becoming the only company in North America to hold a domestic GoodManufacturing Licence for the extraction of natural cannabinoids. TheCompany carries out its operations in compliance with all applicable laws inthe countries in which it operates.
About OneLifeBotanicals
OneLifeBotanicals is a niche producer of medicinal cannabis in Melbourne, Australia. Thecompany has a passion for developing and producing products that provide arange of health benefits and assist in treating a range of specific healthconditions.
The companyoperates an existing cultivation site with extensive Infrastructure, includingfit for purpose glasshouses for growing Medicinal Cannabis in a controlledenvironment. The glasshouses facilitate the optimum growing environment throughtemperature and climate control, allowing natural sunlight to be maximized in aprotected and secure environment.
TheDirectors and stakeholders are focused on identifying and exploring market opportunities,along with embracing innovation in the production processes. The success of thebusiness is able to be achieved with an extensive Research and Developmentprogram, aimed at staying ahead of changes in growing methods, technological solutions,and product applications, along with advanced automation ensuring that we minimizeoperating expenditure and maximise quality control.
Theorganisation is committed to make the health benefits of this natural andpowerful plant available to everyone seeking to improve their One Life.
Forfurther information, please contact:
MediPharm LabsInvestor Relations
Telephone: +1 416.913.7425ext. 1525
Email: investors@medipharmlabs.com
Website: www.medipharmlabs.com
CAUTIONARYNOTE 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 Canadiansecurities legislation. All statements, other than statements of historicalfact, are forward-looking statements and are based on expectations, estimatesand projections as at the date of this news release. Any statement thatinvolves discussions with respect to predictions, expectations, beliefs, plans,projections, objectives, assumptions, future events or performance (often butnot always using phrases such as “expects”, or “does not expect”, “isexpected”, “anticipates” or “does not anticipate”, “plans”, “budget”,“scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations ofsuch 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) arenot statements of historical fact and may be forward-looking statements. Forward-lookingstatements 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 futureevents to differ materially from those expressed or implied by suchforward-looking statements. Such factors include, but are not limited to:general business, economic, competitive, political and social uncertainties;MediPharm Labs’ future growth prospects; and other factors discussed inMediPharm Labs’ filings, available on the SEDAR website at www.sedar.com. Therecan be no assurance that such statements will prove to be accurate, as actualresults and future events could differ materially from those anticipated insuch statements. Accordingly, readers should not place undue reliance on theforward-looking statements and information contained in this news release.Except as required by law, MediPharm Labs assumes no obligation to update theforward-looking statements of beliefs, opinions, projections, or other factors,should they change.