- MediPharmLabs and Shelter Cannabis Brands have terminated their royalty agreement with aone-time cash payment.
- Agreementincludes the elimination of ongoing royalty payments, for a one-time lump sumpayment.
TORONTO, September 20, 2023(CISION NEWSWIRE) – MediPharm Labs Corp. (TSX: LABS) (OTCQB: MEDIF) (FSE: MLZ)(“MediPharm”, “MediPharm Labs” or the “Company”) a company specialized inprecision-based cannabinoids, is pleased to announce it has executed a supplementaryagreement to its Asset Purchase Agreement with 1193269 B.C. Ltd. (o/a ShelterCannabis) for the Shelter Cannabis Brands IP portfolio, ending any ongoingroyalty payments after August 31, 2023.
Under the existing AssetPurchase Agreement, executed in March 2022, MediPharm Labs purchased the IP ofShelter Cannabis Brands. This IP has been focused in market on WildlifeCannabis domestic dry flower and pre-roll products that are manufactured anddistributed via the MediPharm sites.
This supplementary agreementallows for a significant improvement in this product line’s gross margin, whichwill provide flexibility for the Company to further invest in the brand todrive sales, as it continues on the path to profitability. In the last year, MediPharm has madesignificant improvement in its adjusted gross margin. In the last reportedquarter, Q2 2023, this was approximately 21% vs negative 1% in Q2 2022.
The Company appreciates thework done by the previous owners in creating the Shelter Cannabis and Wildlifebrands, and their support and flexibility through the transition of the brandsto MediPharm.
MediPharmcontinues to review every product category and selling channel to optimizemargins and streamline business operations to attempt to achieve the Companygoal of profitability.
About MediPharm Labs
Founded in2015, MediPharm Labs specializes in the development and manufacture ofpurified, pharmaceutical-quality cannabis concentrates, active pharmaceuticalingredients (API) and advanced derivative products utilizing a GoodManufacturing 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 andpurpose-built facilities for delivery of pure, trusted and precision-dosedcannabis products for its customers. MediPharm Labs develops, formulates, processes,packages and distributes cannabis and advanced cannabinoid-based products todomestic and international medical markets.
In 2021,MediPharm Labs received a Pharmaceutical Drug Establishment License from HealthCanada, becoming the only company in North America to hold a commercial scaledomestic Good Manufacturing License for the extraction of multiple naturalcannabinoids. TheCompany carries out its operations in compliance with all applicable laws inthe countries in which it operates.
In2023, MediPharm acquired VIVO Cannabis Inc. which expanded MediPharm’s reach tomedical patients in Canada via Canna Farms medical ecommerce platform, and in Australiaand Germany through Beacon Medical PTY and Beacon Medical GMBH. Thisacquisition also included Harvest Medical Clinics in Canada which providesmedical cannabis patients with Physician consultations for medical cannabiseducation and prescriptions.
For further information,please contact
MediPharm Labs Investor Relations
Telephone: +1 416.913.7425 ext. 1525
Email: investors@medipharmlabs.com
Website: www.medipharmlabs.com
Cautionary NoteRegarding Forward-Looking Information:
This newsrelease contains “forward-looking information” and “forward-looking statements”(collectively, “forward-looking statements”) within the meaning of theapplicable Canadian securities legislation. All statements, other thanstatements of historical fact, are forward-looking statements and are based onexpectations, 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, futureevents 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 certainactions, events or results “may” or “could”, “would”, “might” or “will” betaken to occur or be achieved) are not statements of historical fact and may beforward-looking statements. In this news release, forward-looking statementsrelate to, among other things, significant improvement in gross margin on various product lines,providing flexibility for the Company to further invest its brands to drivesales, continuing on a path to profitability. Forward-looking statements are necessarily basedupon a number of estimates and assumptions that, while considered reasonable,are subject to known and unknown risks, uncertainties, and other factors whichmay cause the actual results and future events to differ materially from thoseexpressed or implied by such forward-looking statements. Such factors include,but are not limited to: general business, economic, competitive, political andsocial uncertainties; the inability of MediPharm Labs to obtain adequatefinancing; the delay or failure to receive regulatory approvals; and otherfactors discussed in MediPharm Labs’ filings, available on the SEDAR website atwww.sedar.com. There can be no assurance that such statements will prove to beaccurate, as actual results and future events could differ materially fromthose anticipated in such statements. Accordingly, readers should not placeundue reliance on the forward-looking statements and information contained inthis news release. Except as required by law, MediPharm Labs assumes noobligation to update the forward-looking statements of beliefs, opinions,projections, or other factors, should they change.