MediPharm Labs Announces DTC Eligibility, Increasing Accessibility for US Investors
MediPharm Labs Corp. (TSX-V: LABS) (OTCQB: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven cannabis extraction, distillation, purification and cannabinoid isolation, is pleased to announce it has received Depository Trust Company (DTC) eligibility for its common shares in the United States. “DTC eligibility” simplifies the process of trading and transferring the Company’s common shares between brokerages in the U.S.
“We are pleased that MediPharm Labs common shares are now considered to be “DTC Eligible”, to facilitate the trading of our common shares in the U.S. markets”, said Patrick McCutcheon, Chief Executive Officer, MediPharm Labs. “We will continue to pursue opportunities that enhance our value, liquidity and strengthen our shareholder base while improving accessibility for all U.S. investors and institutions, as well as global investors, to participate in the future growth of MediPharm Labs”.
DTC is a subsidiary of the Depository Trust & Clearing Corporation, a U.S. company that facilitates electronic trading in the United States. Securities that are considered “DTC eligible”, may be electronically cleared and settled through DTC. MediPharm Labs common shares are now eligible to be distributed, settled and serviced through DTC's automated processes, providing greater efficiency and reduced costs as a result of the electronic method of clearing securities and accelerated settlement processes. Securities that are DTC eligible often experience increased trading volumes. In addition, DTC eligibility addresses the issue that many U.S. firms have that prohibit trading in shares that are not DTC eligible.
MediPharm Labs Announces OTC Ticker Symbol Change to “MEDIF”
MediPharm Labs Corp. (TSXV: LABS) (OTCQB: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven cannabis extraction, distillation, purification and cannabinoid isolation, today announced FINRA has approved a change in the Company’s stock symbol trading on the OTCQB Markets. Effective today, the Company's common shares now trade on the OTCQB under the symbol “MEDIF”. The previous trading symbol was “MLCPF”.
There is no action required by current shareholders in connection with this change.
MediPharm Labs Assembles Globally Renowned Experts to Form Scientific Advisory Committee
MediPharm Labs Corp. announced the formation of its new Science Advisory Committee (the “SAC”), comprised of an internationally esteemed group of expert scientists, researchers and medical professionals.
The SAC will collaborate with the MediPharm Labs management team on advancements in the emerging fields of cannabinoid extraction and cannabinoid-based derivative science. This work will serve to further enhance the Company’s manufacturing platform and research practices, assist management in evaluating commercial opportunities related to technologies, testing and methodologies and provide guidance on partnerships with globally preeminent academic and medical institutions for cannabis research.
“We are extremely proud to bring together this distinguished group of experts. Each member brings a specialized expertise across the fields of extraction, chromatography, formulation, commercial development and pharmaceutical or physician approaches to cannabis science and medicine,” said Pat McCutcheon, CEO of MediPharm Labs. “Together with our senior leadership team, the Science Advisory Committee will be instrumental as we advance the MediPharm Labs platform to drive continued and future growth, develop IP and remain on the forefront of cannabinoid-based derivative research and manufacturing globally.”
Science Advisory Committee Mandate
The SAC’s mandate is to advise and assist MediPharm Labs in harnessing the potential of cannabis through innovation, best practices, thought leadership and strategic alliances in support of MediPharm Labs’ vision of being The Trusted Global Leader in Industrial-Scale Manufacturing of High-Quality, Cannabinoid-Based Derivatives.
Inaugural members of the Science Advisory Board include:
Jerry King, PhD
Dr. King is a world-renowned extraction expert with more than 53 years of experience in supercritical fluid technology, chemical separations, chromatography, and applied chemical engineering & chemistry. Prior to joining the department of Chemical Engineering at the University of Arkansas, he was Program Manager/Research Scientist in the Supercritical Fluid Facility at the Los Alamos National Laboratory. Dr. King was also the Lead Scientist of the Critical Fluid Technology Group at the National Center for Agricultural Utilization Research. His research interests include the development of critical fluid technology for food and agro-material processing, materials science, and analytical applications, and his work in industry has included HPLC methods development for biotechnology, installation of process chromatography, and industrial analysis of saccharides and starch polymers, commercialization of processes dealing with environmentally-benign production of value-added agricultural and botanical materials, and CO2 – based cleaning and micro-electronics production. His R & D activities have involved extensive interaction with government regulatory agencies such as FSIS, FDA, FGIS, EPA, and DOE as well as Euro-based agencies. He has authored over 275 publications (191 are peer-reviewed, including three patents) in Supercritical Fluid Extraction, Supercritical Fluid Chromatography, and related separation techniques; and has lectured extensively on these subjects over the past 40 years at national and international symposia. He serves on the editorial board of the Journal of Supercritical Fluids, Italian Journal of Food Science, Journal of the American Oil Chemical Society, INFORM, and is a member of ACS, AIChE, AOCS, IFT, AOAC, ASTM, and US or international critical fluid technology groups. He is a Vice President of the International Society for the Advancement of Supercritical Fluids. Dr. King received his B.Sc. in Chemistry and continued with graduate studies at Butler University and the University of Utah. In 1973, he received his Ph.D. in surface characterization studies using chromatographic methods from Northeastern University in Boston, Massachusetts, and conducted postdoctoral research in physical chemistry at Georgetown University in Washington, DC. Dr. King was named Scientist of the Year at NCAUR in 1993, and elected to Who’s Who in America, among many other awards, designations and acknowledgements for merit.
Miriam McDonald, MSc
Miriam is currently the Director of Pharmacy at Health Sciences North, Northern Ontario’s largest hospital located in Sudbury. She holds a Bachelor of Science in Pharmacy from the University of Toronto and a Master of Science in Pharmacology from Queen’s University. Her career has encompassed positions as the Executive Director of Community Development at the Northern Ontario School of Medicine, and CEO of the Northeastern Ontario Medical Education Corporation wherein she worked throughout northern Ontario to facilitate community-based medical clinical education. She also served as Director of Planning and Development of Cambrian College, Executive Director of Cambrian Foundation, and Director of Pharmacy, Director of Rehabilitation Services and Assistant Executive Director of Therapeutic Services at Laurentian Hospital. She was Project Coordinator for the planning and construction of the Glenn Crombie Special Needs Centre, the Northern Centre for Advanced Technology, and the Northeastern Cancer Centre. She is the author and co-author of several health-related papers and studies and is very active in the community both on a personal and professional level. She has been recognized by Northern Ontario Business as a Woman of Influence, was the recipient of the Sudbury Business and Professional Women’s Club highest honor – the Bernardine Yackman Award, and has served on the Women’s Health Council of Ontario and Ontario Judicial Appointment Advisory Committee. Raised in northern Ontario, her strongest interest is in projects that address access to health, education, and information technology in northern Ontario.
Arshad Hack, MHA, MD
Dr. Hack is a practicing Family Physician with over 10 years of clinical experience throughout the full spectrum of clinical medicine. Over this period, Dr. Hack has become widely respected as an engaged and empowered patient advocate, visionary leader, and innovator. In addition to his busy clinical practice which includes acute inpatient medicine as a Hospitalist, outpatient medicine, obstetrics, palliative care, and long-term care, he has held the position of the Chief of Family Medicine at Joseph Brant Hospital, Burlington, Ontario since 2010. Dr. Hack’s experience includes playing a key role in the interdisciplinary development of the Geriatric Assessment Clinic - a clinic focused on further meeting the needs of our aging community and their families – as , well as his role in Quality as the Medical Director of the Rehabilitation and Complex Continuing Care Program at Joseph Brant Hospital. Dr. Hack is a systems thinker with a passion for collaboration, integration, quality management and evidence-based medicine. He always strives to enhance the patient experience in the health care system through his own personal care and systems influence and works with teams to continuously move patient outcomes further forward. Dr. Hack works as a health care consultant, helping other organizations enhance the quality of care, and efficiency in providing such care. Dr. Hack holds an Honours Degree in Botany and Human Biology from the University of Toronto. He subsequently completed his Masters in Health Administration from Dalhousie University. While working as a hospital administrator at Baycrest Centre for Geriatric Care where he planned the development of the integrated Brain Health Clinic, he found his passion for clinical medicine and completed his Medical Degree at the University of Connecticut. He returned to Canada in 2007 to further hone his skills in Family Medicine at McMaster University and utilize his skill set for the benefit of his community and all Canadians. Dr. Hack holds an Assistant Clinical Professorship at McMaster University in the Department of Family Medicine, and is actively involved in medical education, both with Family Medicine Residents, and medical students.
Markus Roggen, PhD
Dr. Roggen’s latest project, Complex Biotech Discovery Ventures, is a fundamental research laboratory and Contract Research Organization to the cannabis industry. His industry experience is in crop protection, plant analytics and pharmaceutical manufacturing, and his research interests lie in the metabolite composition and behaviour throughout the production cycle, Supercritical Fluid Extraction process optimization, and development of innovative therapeutic formulations. Dr. Roggen received his master in science degree from Imperial College, London, UK in 2008, his graduate degree is organic chemistry at the Federal Institute of Technology in Zürich in 2012, and was awarded an DAAD postdoctoral fellowship to pursue further training in physical organic chemistry at The Scripps Research Institute in La Jolla from 2013-2014. He has held numerous positions in the cannabis industry including Laboratory Director for Davinci Laboratories of California, and Vice President, Extraction at the cannabis manufacturer, OutCo. Dr. Markus Roggen is also a trusted advisor and mentor for multiple start-ups, start-up accelerators and organizations. He has held advisory positions at Bloom Automation, a cannabis robotics company, Redfield Proctor, a waste management company, and was former co-chair of the NCIA Scientific Advisory Committee.
Matt has enjoyed a 20+ year career in developing, managing and improving commercial operations for the Natural Products, Pharmaceutical and Cannabis Industries. His early work history included grafting rare species, clonal propagation, planting and harvesting, whereby he improved efficiency through project management, mechanization, and automated continuous flow processing at industrial scale. Matt developed new products and production techniques for his clients in the Natural Health Products and Supplements industries including vacuum-evaporated concentrates, isolation of polysaccharides, spray-dried extract powders and ethanolic extracts. In 2003, he co-owned and led Hawaii Phytomedicine and Associates where he employed distillation for the purposes of a new concentrate product line and expanded his addressable market with the rigorous standards of the EU Norm, USDA National Organic Program and Japan Agricultural Standard organic certifications. In 2010, Matt founded and continues to lead Botanical Process Solutions, which facilitates R&D, product development and manufacturing development for cannabis entrepreneurs in North America. His specialized consultancy work spans: Equipment design; Facility design and management; Intellectual property and brand licenses; Certified organic nutrient systems with the highest available nitrogen and phosphorous on the market for cannabis; Cannabis processing expertise in supercritical CO2; Short path and rolled film high vacuum distillation; Continuous and Semi-Continuous winterization; Decarboxylation; Terpene fraction distillation; Terpene isolation; Infused Product Formulation; and through his partner network, automated packaging, filling and capsule solutions as well as Centrifugal Partition Chromatography.
Les Brown, PhD
Dr Leslie Brown, Managing Director of AECS-QuikPrep Ltd is a practising method development chromatographer and chromatography instrument designer. Les founded AECS in 1983, with the company initially specializing in chromatography method development and chromatography instrument design for blue-chip pharmaceutical, agrochemical, environmental and instrumentation clients. AECS later evolved to become AECS-QuikPrep Ltd (“AECS”), shortly after the company became involved in an AECS-designed and retailed product, the Quattro Counter Current Chromatograph (“CCC”) in 1993. Since 1993, Les has constantly been involved in the evolution of CCC and Centrifugal Partition Chromatographs (“CPC”) instrumentation. In addition to instrument design, Les has also been a prime instigator of novel methodology development techniques for countercurrent/liquid-liquid chromatography/extraction. Les has given innumerable lectures on CCC/CPC worldwide, published peer reviewed papers, two book chapters on CCC, and trained users in CCC/CPC, in approximately 20 countries since the early 1990's. Les has been involved in cannabinoid purifications for over ten years. AECS has many Quattro CCC, Quattro CPC, and Partition CPC users for cannabis and other target compound-based purifications worldwide. Les has led projects with operational scale ranging from laboratory research projects from milligram, grams, kilos per day, to potentially multiple tonnes per annum in GMP production. Projects have included commissioning work for a major American Blue-Chip Pharmaceutical Company for high throughput, combinatorial research. Les still enjoys working in the laboratory on challenging research, either for contract chromatography method development projects, or novel custom purification of known targets and unknown bio-actives, from natural products and synthetic research projects. AECS is one of the longest established chromatography instrument design and production manufactures in the United Kingdom. Now in collaboration with their partners, Couturier, France, they are undoubtedly the World Leaders in HSCCC / HPCCC / HPL-LC™ / CPC / HPCPC. Les has co-published CCC papers with researchers in UK, France, Brazil, and China as well as successfully supported and/or co-authored multiple-million Euro research grant applications with different European-based Universities and Corporate clients. Les completed his BSc (Hons) in 1974 at the University College of Swansea, Wales, United Kingdom, his PhD at the University of Manchester, United Kingdom in 1978, and was a Research Fellow at Plymouth Polytechnic, United Kingdom from 1978 to 1983.
MediPharm Labs Reports Q4 2018 Revenue of $10.2 Million and Adjusted EBITDA of $2.1 Million
MediPharm Labs Corp. (TSXV: LABS) (OTCQB: MLCPF) announced fourth quarter and full year financial results for the year ended December 31, 2018. The audited consolidated financial statements and management's discussion and analysis for the periods are available on SEDAR.
Fourth Quarter 2018 Highlights
- Revenue of $10.2 million, commencing November 12th after receipt of sales license from Health Canada
- Gross Profit of $4.0 million, Gross Margin 39%
- Adjusted EBITDA(1) of $2.1 million, Adjusted EBITDA(1) margin of 21%
- Became first fully Licensed Producer to specialize solely in cannabis extraction
- Signed large private label cannabis oil sale agreement with Canopy Growth Corporation for the sale of up to 900 kg over 18 months
- Expanded licensed extraction throughput capacity by 50% to 150,000 kg per year
Full Year 2018 Highlights
- Strengthened management team adding deep scientific, processing, supply chain, finance and regulatory affairs expertise
- Signed 4 multi-year tolling agreements with James E. Wagner Cultivation Corporation, INDIVA Limited, Emerald Health Therapeutics, Inc. and The Supreme Cannabis Company, Inc.
- Purchased 3.8 million grams of dried cannabis from multiple Licensed Producers to build inventory of cannabis oil to address significant consumer demand
- Initiated construction of MediPharm Labs Australia state-of-the-art cannabis extraction facility with License expected H2/19
- Completed equity financings of over $25 million and debuted as a public company on the TSX Venture Exchange on October 4, 2018
- Awarded “Start-Up of the Year” at the Canadian Cannabis Awards by Lift & Co
“2018 was a breakthrough year for MediPharm Labs. We became the first fully Licensed Producer to specialize solely in extraction and quickly scaled operations to emerge as the dominant market leader in the manufacturing of high quality, pharmaceutical-like production of cannabis derivative products – the future of cannabis,” said Patrick McCutcheon, Chief Executive Officer.
“As leading extraction specialists, we demonstrated our ability to rapidly expand our footprint and achieve significant revenue and positive operating cash flow just weeks after receiving our sales License, and our strong operations have continued into 2019. The strength of this performance validates our uniquely focused strategy and investments. We are proud that the MediPharm Labs team stands out among the top global players in the cannabis industry producing tangible results with significant future potential.”
|2018 Key Financial Measures|
|Three months ended||Year ended|
|December 31,||December 31,|
|Gross margin %||39%||-||39%||-|
|Adjusted EBITDA(1) margin %||21%||-||(9%)||-|
2019 Year-to-Date Highlights
- Executed Private Label Sales Agreements in place valued in excess of $85 million over 15-month period from December 2018
- Executed large Private Label cannabis oil sale for $35 million with additional $13.5 million purchase option over 13-month period
- Signed a 3-year Tolling Agreement with TerrAscend Corp.
- First extraction only LP to sign an International Private Label Sale Agreement with AusCann Group Holdings Ltd. – Export of cannabis oil from Canada to Australia for the manufacturing of hard-shell cannabinoid capsules
- Launched White Label Solutions Platform to extract, purify, formulate, process and distribute for LP’s, direct-to-consumer brands and non-cannabis consumer packaged goods (CPG) companies for provincial distribution
- Signed first White Label agreement to formulate, process and distribute tincture bottles on behalf of an existing brand commencing H2 2019
- Acquired over 5,000 KG of dried cannabis for Private Label cannabis oil production in final two weeks of March
- Initiated trading on OTCQB under symbol “MLCPF” and FSE under symbol “MLZ”
Mr. McCutcheon continued, “Looking ahead, we are now working on an ambitious, well-planned agenda for 2019 that will enable MediPharm Labs to extend our first-mover advantage. We are ramping up production, adding capacity, targeting EU GMP certification, expanding product offerings, developing R&D and IP, signing new sales agreements, and executing on our M&A and international growth pipeline.”
“Most importantly, we see all of this as a starting point. We expect to accelerate our growth globally as the size of our addressable market increases and we strengthen our foothold domestically with the expected legalization of vapeables, edibles, beverages and topicals providing a strong growth trajectory in Canada. We will continue to capitalize on the numerous opportunities available to us through effective capital deployment and continued expert execution to create shareholder value for the long term.”
2019 Strategic Priorities
- Forge additional domestic and International sales and supply agreements – Utilizing a first-mover and other proprietary advantages, the Company is focused on procuring cost efficient, bulk dried cannabis supply, increasing wholesale Private Label cannabis concentrate (crude resin and distillate) production and value-added products, services and tolling to win new business domestically and internationally.
- Expand White-Label Solutions Platform Including Formulation, Processing and Distribution Services – Expected legalization of vapeables, edibles, beverages and topicals in October 2019 is also expected to expand the Company’s addressable market and act as a catalyst to encourage a broad array of direct-to-consumer brands and non-cannabis consumer packaged goods companies to seek partners like MediPharm Labs for formulation, processing and provincial distribution.
- Increase cGMP Production Capacity – The Company is on track with the installation and commissioning of 2 additional primary extraction lines at its Barrie facility that are expected to increase annual processing capacity to 250,000 kg over a total of 7 extraction lines. Utilizing cGMP methodology, multiple extraction lines provide flexibility to dedicate to specific customer batches and significantly enhance productivity. Flexibility over multiple extraction lines will be transformative, providing a continued competitive advantage in the cannabis market.
- Achieve European Union GMP Certification at Barrie Facility – Expect to achieve certification in the H2 2019 enabling the Company to serve substantial European demand.
- Complete First International Facility in Australia – Australian centre of excellence is expected to be commissioned in H2 2019, pending licensing, and will act as hub to access Asia-Pacific regions. The facility is designed to produce to cGMP standards with annual extraction capacity of approximately 75,000 kg of dried cannabis. The Australia region provides a strong backdrop for cultivation given more favorable farming conditions where the Company expects to procure locally sourced lower-cost supply inputs for production.
- Expand Secondary Extraction Capabilities – Advancing industrial-scale distillation and commercial chromatography capabilities to produce active pharmaceutical ingredients that require cannabinoid purity of at least 99.9%. Development is underway for specialized, proprietary chromatography processing with trials to commence H2 2019.
- M&A and Joint Venture Opportunities – The Company has established a robust pipeline of opportunities to replicate its unique business model in other jurisdictions and complementary acquisitions to further enhance and accelerate organic growth.
2018 Financial Highlights
All dollar amounts are expressed in Canadian dollars unless otherwise stated.
|Three months ended||Year ended|
|December 31,||December 31,|
|Cost of sales||(6,231||)||-||(6,231||)||-|
|General administrative expenses||(1,749||)||(694||)||(3,556||)||(947||)|
|Marketing and selling expenses||(597||)||-||(1,272||)||-|
|Share-based compensation expense||(738||)||-||(1,965||)||-|
|Other operating expenses||(19||)||(1||)||(996||)||(1||)|
|Net loss for the year||(3,542||)||(742||)||(8,466||)||(995||)|
|Operating loss – as reported||(3,366||)||(695||)||(8,052||)||(948||)|
|Share-based compensation expense||738||-||1,965||-|
- Adjusted EBITDA is not a recognized performance measure under IFRS, does not have a standardized meaning and therefore may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is included as a supplemental disclosure because Management believes that such measurement provides a better assessment of the Company’s operations on a continuing basis by eliminating certain non-cash charges and charges or gains that are nonrecurring. Adjusted EBITDA is defined as net loss excluding interest, taxes, depreciation and amortization, and share-based compensation and listing expense. Adjusted EBITDA has limitations as an analytical tool as it does not include depreciation and amortization expense, interest income and expense, taxes, share-based compensation and transaction fees. Because of these limitations, Adjusted EBITDA should not be considered as the sole measure of the Company’s performance and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results as reported under IFRS. The most directly comparable measure to Adjusted EBITDA calculated in accordance with IFRS is operating income (loss). The above is a reconciliation of the Company’s operating loss to Adjusted EBITDA. See “Reconciliation of non-IFRS measures” in the Company’s Management’s Discussion and Analysis for the year ended December 31, 2018 additional information.
MediPharm Labs Acquires Over 5,000 KG of Dried Cannabis for Private Label Cannabis Oil Production and Launches New White Label Solutions Platform
MediPharm Labs Corp. (TSXV: LABS) (OTCQB: MLCPF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven cannabis extraction, distillation, purification and cannabinoid isolation, is pleased to announce that its wholly owned subsidiary, MediPharm Labs Inc. (“MediPharm”), has entered into purchase agreements with multiple cultivators, successfully acquiring over 5,000 KG of dried cannabis supply in the last two weeks of March 2019. In addition to MediPharm’s ongoing monthly procurement strategy, this large volume purchase of dried cannabis supply strategically positions the Company to significantly increase sales of cannabis concentrates.
“With our extensive network of cultivation partnerships, we continue to secure and purchase increasing volumes of additional dried cannabis supply to further boost our sizeable inventory of high-quality pharma-grade cannabis oil,” said Patrick McCutcheon, Chief Executive Officer of MediPharm Labs.
“As extraction specialists, we are diligently executing on ramping up operations ahead of the legalization of concentrates-based vapeables, topicals and edibles this fall, and for our upcoming EU GMP certification, that we expect will significantly increase the size of our addressable market. We continue to aggressively build our inventory to enhance sustainable, uninterrupted high-margin private-label production and maintain our leadership position in the global cannabis industry value chain.”
MediPharm Labs Launches White-Label Solutions Platform
MediPharm Labs is also pleased to announce the launch of its White Label program as it ramps up operations well in advance of the next evolution of the Cannabis Act in Canada, including the expected legalization of derivatives and edible products in the fall of 2019. With the pending legalization of vapeables, edibles, beverages and topicals, the Company anticipates a significant increase in its addressable market that will also act as a catalyst to encourage various direct-to-consumer brands and non-cannabis consumer packaged goods companies to seek partners like MediPharm Labs. Through its existing and growing platform, the Company will provide a full-service solution including formulation, processing, packaging and distribution, to bring new and well-established brands to fulfill growing consumer demand. MediPharm signed its first white-label customer and looks forward to providing several updates over the coming months as it continues active discussions with new partners through its large, rapidly growing sales pipeline.
The Company has continued to grow its team of extraction specialists in the areas of science, technology, production, supply chain, regulatory affairs and business development. As a result, the Company also announced that its Board of Directors has approved a grant of stock options under its stock option plan to purchase an aggregate of 791,000 common shares in the capital of the Company (“Shares”) at an exercise price of $3.34 per Share, being the closing price of the Shares on the TSX Venture Exchange on March 29, 2019, for a five-year term expiring March 29, 2024. Each grant vests in five equal instalments, the first of which vests immediately with the four other instalments vesting on the dates which are six, twelve, eighteen and twenty-four months from the grant date. The stock options were granted to employees of the Company and are subject to any necessary regulatory approvals. MediPharm Labs includes options as part of its compensation to all employees, building a corporate culture aligned for the long-term with shareholder value.
MediPharm Labs Expands Legal Team Adding Cannabis Expertise and Announces Participation at Upcoming ConferencesPress Release
MediPharm Labs Corp. (TSXV: LABS) (OTCQB: MLCPF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven cannabis extraction, distillation, purification and cannabinoid isolation, is pleased to announce it has expanded its legal team with the recent appointment of Daniel Everall, B. Comm, JD, as Director of Legal.
The Company also announced its participation at upcoming investor conferences in April 2019:
- BMO Capital Markets 2019 Cannabis Conference, April 4, 2019 – Toronto
- GMP Securities Cannabis Conference, April 16, 2019 – Toronto
MediPharm Labs participates in investor presentations and conferences throughout the year. Interested parties can find a schedule of these and other conferences in upcoming events at www.medipharmlabs.com.
Company Expands Legal Team Adding Cannabis Expertise
Daniel Everall joins MediPharm Labs after 7 years at Aird & Berlis LLP, where he summered and articled before becoming an associate in the firm’s Capital Markets Group, a founding member of its Cannabis Group and a Director of its Startups Team. There he focused on securities law, M&A, cannabis regulatory compliance and general corporate and commercial matters. He also frequently acted as counsel to cannabis and non-cannabis startups seeking to scale-up and commercialize their products. Daniel played an integral role in advising MediPharm Labs Inc. on their reverse take-over of POCML 4 Inc. (and TSX-V listing) and $22.3 million private placement. He holds a Juris Doctor from University of Toronto’s Faculty of Law and a Bachelor of Commerce (with distinction) from the University of Alberta.
About MediPharm Labs Corp.
Founded in 2015, MediPharm Labs has the distinction of being the first company in Canada to become a licensed producer for cannabis oil production under the ACMPR without first receiving a cannabis cultivation licence. This expert focus on cannabis concentrates from our cGMP (current Good Manufacturing Practices) and ISO standard clean rooms and critical environments laboratory, allows MediPharm Labs to produce purified, pharmaceutical-grade cannabis oil and concentrates for advanced derivative products. MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream extraction methodologies and purpose-built facilities to deliver pure, safe and precisely-dosed cannabis products to patients and consumers. MediPharm Labs’ private label program is a high margin business for the Company, whereby it opportunistically procures dry cannabis flower and trim from its numerous product supply partners, to produce proprietary cannabis oil concentrate products for resale globally on a private label basis.
MediPharm Labs to Present at the 31st Annual ROTH Conference
MediPharm Labs Corp. (OTCQB: MLCPF) (TSX-V: LABS) (FSE: MLZ) (“MediPharm Labs”), a leader in specialized, research-driven cannabis extraction, distillation, purification and cannabinoid isolation, today announces that it will present at the 31st Annual ROTH Conference in Orange County, California.
MediPharm Labs executive management is scheduled to present at the conference on Tuesday, March 19, at approximately 8:00 a.m. PDT at The Ritz-Carlton hotel in Dana Point.
The annual ROTH Conference, hosted by ROTH Capital Partners March 17-19, gathers more than 500 companies and approximately 1,000 investors, featuring presentations from public and private companies in a variety of sectors including healthcare.
Globe says Medipharm Labs rated "buy" in new coverage
The Globe and Mail reports in its Thursday, March 7, edition that calling it a "first mover" in the cannabis-oil extraction business, Mackie Research analyst Greg McLeish commenced coverage of Medipharm Labs ($3.05) with a "buy" rating. The Globe's David Leeder writes in the Eye On Equities column that Mr. McLeish targets the shares at $6. Mr. McLeish is on the only analyst on the Street covering the stock. Mr. McLeish says in a note: "The company has made significant progress in international expansion with the development of Medipharm Labs Australia, which will service all of Australia and the Asia Pacific. Construction of a facility in Victoria has already commenced and is expected to be complete in H2 2019 pending receipt of the appropriate licensing. In Australia, Medipharm has been working with 25 cultivators to provide supply inputs and secure private label agreements. The company recently signed a two year private sale agreement with AusCann, whereby Medipharm will supply AusCann with private-label cannabis oil over the period starting Feb. 20, 2019. The Australia facility is expected to act as an import/export hub for all of Asia Pacific, local regulations permitting."
MediPharm Labs Signs First International Private Label Sale Agreement With AusCann for Cannabis Oil Export to Australia
MediPharm Labs Corp. (TSXV: LABS) (OTCQB: MLCPF) (FSE:MLZ) (“MediPharm Labs”), a leader in specialized, research-driven cannabis extraction, distillation, purification and cannabinoid isolation, is pleased to announce that its wholly-owned subsidiary, MediPharm Labs Inc. (“MediPharm Labs” or the “Company”), has entered into its first definitive international sales agreement, dated February 20, 2019, with AusCann Group Holdings Ltd. ("AusCann") to supply private label purified, pharmaceutical grade cannabis oil concentrates, or resin, from MediPharm Labs’ own inventory of oil for export to Australia. AusCann will use MediPharm Labs’ concentrates to manufacture hard-shell cannabinoid capsules to address the medical patient demand and critical need for precision and consistency of dose in cannabinoid medicines.
“MediPharm Labs has quickly established a global reputation as the go-to producer of high quality, pharmaceutical grade cannabis concentrates at commercial scale. We are thrilled to have been selected by AusCann as a supplier of choice for their medical products and clinical trials,” said Patrick McCutcheon, Chief Executive Officer of MediPharm Labs. “As the first extraction-only LP to begin exporting to Australia, this agreement marks an important milestone that accelerates our expectations for future growth. Looking ahead, we expect to begin supplying additional international markets to build our robust global distribution platform.”
“MediPharm Labs’ significant market share combined with proprietary methodology ensures reliable supply of pharma-grade cannabinoid extracts and AusCann’s continued ability to develop and deliver quality cannabinoid medicines for distribution in Australia,” said Dr. Paul MacLeman, Interim CEO of AusCann. “Critical to our process is repeatability in manufacturing, reliable dosing, and purity assurance. MediPharm Labs’ concentrates will form an important foundation to our products that will allow delivery of effective, trusted and safe medicines for the treatment of chronic pain.”
This marks the Company’s first international export agreement and establishes MediPharm Labs as the first extraction-only licensed producer in Canada to commence exporting pharmaceutical grade cannabis oil to Australia. To date, MediPharm Labs has completed 5 private label sales agreement since receiving its sales license in November 2018. The first export of cannabis concentrate is expected be completed in the coming months, subject to regulatory requirements. The agreement has a two-year term. The Company expects to continue expanding its international distribution of its proprietary cannabis concentrate products for resale globally on a private label basis for medical markets. Initially this demand will be serviced from its wholly-owned, leading facility in Canada, and once its Australian laboratory, now under construction, is fully licensed and operational, Australia and Asia-Pacific demand can be addressed regionally.
About AusCann Group Holdings Limited
AusCann Group Holdings Limited (ASX:AC8) is an Australian-based pharmaceutical company that is working to produce high quality, economical, and clinically validated cannabinoid medicines. AusCann is bringing together leading expertise and operations across all aspects of the medical cannabis value chain, beginning with cultivation and production, through to manufacture and distribution of products. Through partnerships with industry experts, existing leading market participants and doctors, AusCann is building operations and educating the medical community about the benefits of cannabinoid medicines. Incorporated in 2014, AusCann holds all necessary licenses to grow and manufacture cannabinoid medicines in Australia. The company is initially targeting medications for neuropathic and chronic pain in Australia and Chile, whilst exploring global export opportunities.
MediPharm Labs Announces Listing on Frankfurt Stock Exchange
MediPharm Labs Corp. (TSXV: LABS) (OTCQB: MLCPF) (FSE:MLZ)(“MediPharm”) a leader in specialized, research-driven cannabis extraction, distillation, purification and cannabinoid isolation, is pleased to announce that its common shares are now listed on the Frankfurt Stock Exchange (FSE) trading under the ticker symbol “MLZ”. The Company continues to be listed on the Toronto Stock Exchange Venture (TSXV) under the ticker symbol “LABS” and on the OTC in the U.S. under the ticker symbol “MLCPF.”
“Listing on the Frankfurt Stock Exchange is an important step in our future growth as we focus on both domestic and international opportunities and also raises MediPharm’s awareness among the global investor community,” said Patrick McCutcheon, Chief Executive Officer of MediPharm. “As investor interest and momentum in the cannabis industry continues to accelerate, our company is well-positioned to participate in the European and global cannabis markets as they continue to expand, and we receive our EU GMP certification that will allow MediPharm products to be exported across Europe.”
MediPharm Labs Signs $35 Million Private Label Cannabis Oil Sale Agreement with Option for Additional $13.5 Million
MediPharm Labs Corp. (TSXV: LABS) (OTCQB: MLCPF) (“MediPharm”) a leader in specialized, research-driven cannabis extraction and cannabinoid isolation, is pleased to announce that its wholly-owned subsidiary, MediPharm Labs Inc. (“MediPharm Labs” or the “Company”), has entered into a significant sales agreement with a leading Licensed Producer to supply approximately $35 million of private label purified cannabis oil concentrates. Under the terms of the agreement, the Licensed Producer will immediately purchase upfront $7.66 million of cannabis oil concentrate from MediPharm Labs’ inventory in February 2019. In addition, the Licensed Producer will purchase a minimum of $27 million of cannabis oil concentrate over a 12-month period commencing March 2019, with an option to purchase an additional $13.5 million over the same period, bringing the total potential aggregate value of the agreement to over $48 million to February 2020.
MediPharm Labs’ private label program is a high margin business for the Company, whereby it opportunistically procures dry cannabis flower and trim from its thirteen product supply partners, to produce proprietary cannabis oil concentrate products for resale globally on a private label basis. This is MediPharm Labs’ fourth private label sales agreement to date. In total, these four agreements have aggregate potential value of over $85 million in the 15-month period that commenced December 2018.
“As the cannabis industry continues to rapidly grow and evolve, MediPharm Labs has quickly established itself as a dominant player and leading provider of private label cannabis oil concentrates to other Licensed Producers and branded product manufacturers. We have also demonstrated the permanent need for a specialized extraction provider to fulfill and secure the cannabis supply chain for medical and recreational consumers,” said Pat McCutcheon, CEO of MediPharm Labs. “With our significant first mover advantage, deep expertise, leading-edge proprietary technology to manufacture and develop high-quality cannabis oil and concentrate products at commercial scale, we have quickly been able to execute several major contracts already and continue to see robust demand for our specialized products and services and are well positioned to achieve strong revenue growth as a dominant extraction company in the cannabis industry.”
As an agnostic supplier of pharmaceutical grade cannabis oil concentrates to the global cannabis industry, MediPharm Labs has demonstrated its ability to strengthen and further secure the domestic supply chain for high-demand cannabis oil. This new supply agreement, combined with a large, long-term oil supply agreement previously announced with Canopy Growth Corporation, represents less than 10% of MediPharm Labs’ annual extraction capacity of 150,000 Kg, which is currently being expanded to 250,000 Kg of annual extraction capacity, with completion expected Q2 2019.
To date, MediPharm Labs has completed four private label wholesale agreements for cannabis oil concentrate supply (including Canopy Growth Corporation); five long-term cannabis concentrate program (tolling) agreements with James E. Wagner Cultivation Corp., Emerald Health Therapeutics, Inc., INDIVA Limited, The Supreme Cannabis Company, Inc. and TerrAscend Corp. Additionally, the Company has completed bulk purchases and/or off-take agreements with thirteen Licensed Producers securing dried cannabis supply to build MediPharm’s oil inventories for private label sale. The Company also continues to make progress on new partnership agreements with additional Licensed Producers and branded product manufacturers for cannabis private label manufacturing, as well as partnerships to purchase cannabis concentrates for global export for private label and research and development.
MediPharm Labs Aligns Leadership and Organizational Structure For Future Prosperity of Company
MediPharm Labs Corp. (TSXV: LABS) (OTCQB: MLCPF) (the “Company” or “MediPharm Labs”) the leader in specialized, research-driven cannabis extraction, is pleased to announce the appointment of Co-founder, Keith Strachan to President, with Founder, Pat McCutcheon continuing in his role as CEO and Chairman of the Board. The Company further expands its leadership team with three well-earned promotions and a strategic new hire: Kirk Binns assumes the role of Executive Vice President, Global Accounts;
Dr. Chris Talpas is promoted to Vice President, Quality and Scientific Affairs; Michael Perron takes on the elevated role of Vice President, Business Development; and Laura Lepore, formerly of Home Capital Group Inc., has been brought on as Vice President, Investor Relations & Communications.
“This new bolstered leadership signals MediPharm Labs’ evolution and focus on transforming from a high-performing start-up to a world-class global leader in the industrial-scale manufacturing of high-quality cannabinoid-based derivatives,” said Pat McCutcheon, CEO and Chairman of MediPharm Labs. “Our exceptional, cohesive teamresponsible for our current day success is further strengthened by this new structure and additional roles. Each member of our senior team will apply their respective expertise to execute on our differentiated business model and defined strategies to rapidly accelerate our growth and leadership position both domestically and globally.”
- Keith Strachan co-founded MediPharm Labs in 2015, utilizing his consultancy expertise in Public Sector RFP and government contracts, compliance for government licensing and local planning, to break the mold and secure the first Health Canada Licence for cannabis oil production without first being a cultivator. A seasoned entrepreneur, Keith has applied his leadership to building out MediPharm Labs’ leading-edge facilities, launching operations and growing its workforce, while also strategically driving business development with the Company’s many supply, contract processing and white label partner LPs.
- A Molecular Biologist by training, Kirk Binns was a founding shareholder of MediPharm Labs. A serial entrepreneur, Kirk has spent most of his career in the North American deregulated energy markets, leading market expansions, client acquisitions and managed up to 100 reports across multiple markets. Over the last 12 years, he established and ran a multinational energy sales organization generating 7-figures annually, while also contributing to MediPharm Labs’ start-up and operations. Kirk takes on the role of EVP, Global Accounts to help MediPharm Labs realize its vision as the trusted global leader in cannabinoid-based derivatives.
- Dr. Chris Talpas, a renowned Chromatography expert with 24-years in the bio-pharmaceutical field, was one of MediPharm Labs’ first employees, brought on to develop and validate the Company’s complex quality systems, processes, equipment and facilities. In his role as VP, Quality and Scientific Affairs, Dr. Talpas will broaden his oversight to include quality and scientific affairs in new global markets.
- Prior to joining MediPharm Labs in August 2018, Michael Perron spent over 10 years in professional services and was the national advisory services lead supporting the cannabis industry and has been a key advisor to numerous LPs, LP applicants, and ancillary cannabis businesses. This industry expertise and network was critical in his business development role, earning him the promotion to Vice President, Business Development.
- Laura Lepore brings more than 16 years of award-winning Investor Relations, Communications and Capital Markets experience across Financial, Industrial and Mining sectors. Laura was most recently AVP, Investor Relations at Home Capital Group Inc. and led IR through two significant transactions and a governance renewal. During her tenure with TD Bank Financial Group she held various roles in IR and Corporate Banking. Previously Laura was Director of IR for Newmarket Gold and Crocodile Gold. She earned her Bachelor of Arts, Economics from York University and is currently a Board Director for the Canadian Investor Relations Institute, Ontario Chapter.
The Company also announced its Board of Directors has approved a grant of stock options under its stock option plan to purchase an aggregate of 790,500 common shares in the capital of the Company (“Shares”) at an exercise price of $1.96 per Share, being the closing price of the Shares on the TSX Venture Exchange on February 4, 2019, for a five-year term expiring February 4, 2024. Each grant vests in five equal instalments, the first of which vests immediately with the four other instalments vesting on the dates which are six, twelve, eighteen and twenty-four months from the grant date. The stock options were granted to employees of the Company and are subject to any necessary regulatory approvals.
“Our senior leadership team is supported by MediPharm Labs’ highly-engaged and motivated employees, now numbering 75 scientists, technicians, engineers and business professionals. We have worked diligently to create a positive corporate culture, and recently added a stock option grant program seeing every staff member able to participate in the future success of the business. It’s a winning formula,” said Pat McCutcheon, CEO and Chairman of MediPharm Labs.”
MediPharm Labs Signs New Cannabis Oil Agreements and Completes First Shipments of Supply in December
MediPharm Labs Corp. (TSXV: LABS; OTCQB: MLCPF) (the “Company” or “MediPharm Labs”), the leader in specialized, research-driven cannabis extraction, fully licensed under the Cannabis Act (Canada) focused on downstream secondary extraction methodology, distillation, and cannabinoid isolation and purification, is pleased to announce it has signed three cannabis oil sales agreements, subsequent to the Company’s receipt of its sales license from Health Canada on November 9, 2018. The first large shipments of cannabis oil supply left the Company’s dock in December 2018 and were aggregately valued at over $10 million.
“As a pioneer in the cannabis industry, MediPharm Labs has emerged as the clear leader in the extraction-only category, highlighted by our first month of sales agreements of white label high-quality purified cannabis oil concentrates,” said Mr. Patrick McCutcheon, Chairman, President and Chief Executive Officer of MediPharm Labs. “This milestone further validates the strength of our differentiated model as a complement and partner to vertically integrated licensed producers while also demonstrating the potential for MediPharm to rank alongside the top revenue generating cannabis companies in the industry.”
“Looking ahead to 2019, we continue to build on our momentum as MediPharm is increasingly being recognized as the supplier of choice for high-quality purified cannabis oil as well as for toll processing, particularly among mid-to-large-sized vertically integrated licensed producers, and we see a clear path for continued and sustainable growth in 2019 and beyond. We look forward to further accelerating growth through the multitude of substantial contracts already in place and robust pipeline of new opportunities, which will be further enhanced in the near future upon receiving full cGMP producer certification and opening up additional international opportunities.”
MediPharm Labs’ strong momentum has continued into 2019 with several significant accomplishments to support its continued growth as the leader in specialized, research-driven cannabis extraction business designed for large scale commercial production. Highlights include:
- Processed and sold large quantities of cannabis oil inventory under its white label program. Has since acquired large volume of dried cannabis to ensure uninterrupted supply of oil for existing and new customers. Deep industry relationships and proactive supply chain management have secured over 1,600kg of cannabis flower and trim over a 3-week period from 7 different licensed producers (“LPs”). The Company has now made supply purchases from 13 LPs and is continuing to procure additional supply to meet strong demand.
- Executed multiple long-term tolling agreements with 6 LPs under Cannabis Concentrates Program under which it has received large quantities of dried cannabis for processing. In addition to the current arrangements in place, the Company has a robust pipeline of new opportunities which are under evaluation and/or negotiation.
- Initial extraction capacity of 100,000 kg of dried cannabis was increased by 50% to an industry leading capacity of 150,000 kg as approved by Health Canada December 24, 2018. (This total capacity equates to 29.1 million vape pen cartridges equivalent). Continued expansion plans are underway to support growing demand for cannabis oils, the fastest growing segment of the cannabis industry.
MediPharm Labs Acquires Large Volumes of Dried Cannabis for Oil Extraction Ensuring Continuous Product Supply
MediPharm Labs Corp. (TSXV: LABS; OTCQB: MLCPF) (the “Company” or “MediPharm Labs”), a specialized, research-driven cannabis extraction business, fully licensed under the Cannabis Act (Canada) focused on downstream secondary extraction methodology, distillation, and cannabinoid isolation and purification, is pleased to announce that its wholly-owned subsidiary, MediPharm Labs Inc. (“MediPharm”), has secured large volumes of dried cannabis inventory for oil extraction and resale. MediPharm purchased over 1,600 kg of additional dried cannabis from 7 different licensed producers between December 18, 2018 and January 8, 2019, replenishing and increasing inventory to ensure uninterrupted cannabis oil supply for its existing customers for Q1 2019 and to satisfy the robust and growing market demand for high quality purified concentrates. MediPharm also continues to receive large quantities of dried cannabis for fee-for-service processing from its Cannabis Concentrate Program Agreement partners.
“In 2019 we have continued to build momentum. We are ramping up production and building inventory to increase oil sales and accelerate revenue expectations,” said Mr. Pat McCutcheon, President & CEO, MediPharm Labs. “With large volumes of dried cannabis secured, MediPharm is positioned to deliver on our customers’ expectations for uninterrupted near-term oil supply while also increasing overall oil inventory to start addressing the existing significant market demand for concentrates that continues to grow at an exponential pace.”
MediPharm Labs Signs Large Multi-Year Cannabis Extraction Agreement With TerrAscend Marking Strong Start to 2019
MediPharm Labs Corp. (TSXV: LABS; OTCQB: MLCPF) (the “Company” or “MediPharm Labs”), a specialized, research-driven cannabis extraction business, fully licensed under the Cannabis Act (Canada) focused on downstream secondary extraction methodology, distillation, and cannabinoid isolation and purification, is pleased to announce that its wholly-owned subsidiary, MediPharm Labs Inc. (“MediPharm”), has entered into an initial three-year extraction agreement for processing of dried cannabis to cannabis oil concentrates (the “Agreement”) with TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) (“TerrAscend”). This Agreement marks a strong start to 2019 for MediPharm as the Company continues to grow its base of multi-year cannabis extraction and processing customers, increasing asset utilization and recurring revenue expectations.
“We are off to a strong start in 2019 with the addition of TerrAscend to our portfolio of high-quality cannabis oil extraction partners,” said Mr. Pat McCutcheon, President and CEO, MediPharm Labs. “This Agreement and others like the one we’ve signed with TerrAscend, provide steady operational throughput, increased efficiency and a solid revenue base as we scale our business to 250,000 KG of dried cannabis extraction capacity annually.”
“We are excited to be working with TerrAscend through tolling as we continue building on our extraction expertise and techniques and advance our white label and bulk cannabis oil sales strategy to accelerate revenues. We are positioned with the capacity to grow with TerrAscend, servicing their future needs, as they pursue significant domestic and international opportunities, including supporting the growth of their patient network and consumer brands.”
Dr. Michael Nashat, CEO, TerrAscend, commented, “We are delighted to be working with MediPharm given their expertise in extraction and strong track record in delivering high-quality cannabinoid products. MediPharm’s focus on cannabinoid extraction makes them an ideal partner to support TerrAscend’s focus on diversifying our product offering in Canada and abroad.”
Under the terms of the Agreement, TerrAscend will supply bulk quantities of dried cannabis to MediPharm for processing on a fee for service basis into bulk resin or other premium cannabis oil derivative products sold under TerrAscend brands.