Medipharm Labs Corp OTCMKTS: MEDIF 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 being built to cGMP (current Good Manufacturing Practices) and ISO standard-built clean rooms and critical environments laboratory, allows MediPharm Labs to produce purified, pharmaceutical-like 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 cannabis oil concentrate products for resale globally on a private label basis.
Medipharm Labs Corp OTCMKTS: MEDIF On May 10, 2019 announce first quarter financial results for the three months ended March 31, 2019. The consolidated financial statements and management’s discussion and analysis for the period will be available on SEDAR.
“As a differentiated cannabis company, we achieved strong first quarter results and set the pace for continued robust growth, marking our position among top-tier Canadian cannabis companies,” said Patrick McCutcheon, Chief Executive Officer, MediPharm Labs. “Our revenue and adjusted EBITDA performance, which more than doubled to $22 million and $4.3 million in our first full quarter of operations, illustrates the value of our specialized focus and ability to execute as the Canadian market’s leading extraction experts and providers of high-quality cannabinoid-based derivative formulations at scale. It also demonstrates our ability to convert revenue into positive operating cash flow – a key milestone achieved less than five months after receiving our sales licence.”
“Our very strong start to the year included signing our fifth, 3-year tolling agreement, with TerrAscend Corp., and completing two new private label supply agreements in the quarter, raising the total potential value of our private label sales agreements to in excess of $85 million over a 15-month period from December 2018. This strong sales momentum continued well into the second quarter, with several new agreements in process and a healthy pipeline beyond those.”
“In anticipation of expanded legalization in the fall of 2019, we are advancing our distillate and white label solutions platforms to enhance our position for vapeables, edibles and topicals as we expect our addressable market and consumer demand to significantly increase. Our white label offering will be an enduring advantage and attractive solution for LP’s, direct-to-consumer brands and CPG companies, which we expect will also accelerate our growth in the months and years ahead.”
Key Operational and Year-to-Date 2019 Highlights
Executed multiple private label sales agreements with potential sales value in excess of $85-million over 15-month period from December 2018, with a robust pipeline of additional private label sales opportunities
Signed first international private label sale agreement with AusCann Group Holdings Ltd. for export of cannabis oil from Canada to Australia for chronic pain medicines
Continued expansion of white label solutions platform, as planned, to offer formulation, manufacturing and distribution services, in addition to active ingredients, for cannabis oil input products including for vapeables, edibles, beverages and topicals; expected to drive future margin expansion
Appointed renowned medical expert and pharmaceutical researcher, Dr. Paul Tam, to the Board of Directors and Audit Committee
Appointed Braden Fenske, former Group Product Director, Global Strategic Marketing for Biosense Webster Inc., a Johnson & Johnson Company, to newly created Chief Strategy Officer position to advance corporate strategy, global growth and strategic partnerships
Assembled diverse team of globally renowned experts to form our Science Advisory Committee