MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ)
(“MediPharm Labs” or the “Company”), a leader in specialized,
research-driven cannabis extraction and cannabinoid isolation, is
pleased to announce that it has entered into a multi-year supply
agreement with TerrAscend Canada Inc., a wholly-owned subsidiary of
TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) (“TerrAscend”). MediPharm
Labs will supply TerrAscend with approximately $27 million of
high-quality private label cannabis distillate, over 24-months
commencing September 2019, and, subject to certain renewal and
purchase options, potentially up to $192 million over 36-months to
September 2022. In connection with Canadian Cannabis 2.0
legalization, with amended regulations coming into force on October
17, 2019, TerrAscend will use this supply to support the production
and launch of its exciting portfolio of branded products in Canada
this fall.
“As Canada prepares for the next stage of
legalization, we are thrilled to be collaborating with a leading
global company like TerrAscend focused on creating new and
innovative product formulations and brands that enhance the
consumer experience,” said Patrick McCutcheon, Chief Executive
Officer, MediPharm Labs. “In addition to our expertise in producing
high-quality distillate and ability to provide stable supply, we
are excited to explore the potential of global and US growth
opportunities with TerrAscend as we work towards our final EuGMP
certification.”
Michael Nashat, TerrAscend's Chief Executive
Officer, said, "This agreement provides TerrAscend with access to
high quality extract material which we intend to utilize in a range
of premium products for Canada and international markets.
Partnering with a leading company such as MediPharm Labs ensures
that we are able to continue to meet the evolving product needs of
our patients and consumers.”
Bulk Resin Supply Agreement
Under the terms of the Bulk Resin Supply
Agreement (the “Agreement”) dated September 24, 2019, TerrAscend
will purchase a minimum of approximately $27 million of cannabis
concentrate from MediPharm Labs Inc. (“MediPharm”), a wholly-owned
subsidiary of MediPharm Labs, over the course of 24-months.
TerrAscend will have the option to purchase up to an additional
$105 million of cannabis concentrate over the same period, subject
to the availability of such supply from MediPharm. The Agreement
includes an option for a 12 month mutual extension where, if
extended, TerrAscend would additionally purchase a minimum of
approximately $10 million, and would have a right of first offer to
purchase an additional approximately $51 million over the same
period, subject to the availability of such supply from MediPharm,
bringing the total potential aggregate value of the Agreement to
over $192 million to the end of September 2022.
About TerrAscend
TerrAscend provides quality products, brands,
and services to the global cannabinoid market. As the first North
American Operator (NAO), with scale operations in both Canada and
the US, the Company participates in the medical and legal adult use
market across Canada and in several US states where cannabis has
been legalized for therapeutic or adult use. TerrAscend is the
first and only cannabis company with sales in the US, Canada, and
Europe as it has received EU GMP certification for its
manufacturing facility in Mississauga, Ontario. TerrAscend operates
a number of synergistic businesses, including The Apothecarium, an
award-winning cannabis dispensary with several retail locations in
California and Nevada; Arise Bioscience Inc., a manufacturer and
distributor of hemp-derived products; Ilera Healthcare,
Pennsylvania’s premier medical marijuana cultivator, processor and
dispenser; Ascendant Laboratories Inc., a biotechnology and
licensing company committed to the continuous improvement of
cannabinoid expressing plants; Solace RX Inc., a proposed Drug
Preparation Premises (DPP) focused on the development of novel
formulations and delivery forms; and Valhalla Confections, a
manufacturer of premium cannabis-infused edibles. Additionally,
TerrAscend has been chosen by the state of New Jersey to be one of
six permit applicants for a vertically integrated medical cannabis
operation. For more information, visit www.terrascend.com.
About MediPharm Labs
Founded in 2015, MediPharm Labs specializes in
the production of purified, pharmaceutical-like cannabis oil and
concentrates and advanced derivative products utilizing a Good
Manufacturing Practices designed facility and 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 with five primary
extraction lines having 300,000 kg of annual processing capacity to
deliver pure, safe and precisely dosed cannabis products for its
customers. Through its wholesale, white label and tolling
platforms, they formulate, process, package and distribute cannabis
extracts and advanced cannabinoid-based products to domestic and
international markets. As a global leader, the Company also
completed its first commercial export to Australia in June 2019 and
is nearing completion of its Australian extraction facility
expected in 2019 with 75,000 kg of annual processing capacity.
For further information, please contact:
Laura Lepore, VP, Investor Relations Telephone: 705-719-7425
ext 216
Email: investors@medipharmlabs.com
Website: www.medipharmlabs.com
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, providing stable supply, exploring the
potential of global and US growth opportunities with TerrAscend,
working towards final EuGMP certification, the completion of
MediPharm Labs’ Australian facility and timing thereof, and
expected processing capacity of the Australian facility.
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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