INDIVA Signs Cannabis Concentrate Program Agreement With MediPharm Labs

Published: September 4, 2018

INDIVA Signs Cannabis Concentrate Program Agreement With MediPharm Labs

INDIVA Limited announced its wholly-owned subsidiary, INDIVA Inc., has entered into a Cannabis Concentrate Program Agreement with MediPharm Labs Inc. Pursuant to the Agreement, the parties have entered into a commercial arrangement whereby INDIVA will provide MediPharm with dried cannabis to use for the purposes of creating cannabis oil. The Program will be for an initial term of three years.

Subject to the bulk transfer approval of Health Canada and other applicable regulatory approvals, INDIVA will ship dried cannabis to MediPharm which MediPharm will use to produce cannabis oil. The parties intend that under the Program, MediPharm may provide cannabis oil to INDIVA or to other licensed producers of medical cannabis at the direction of INDIVA. Alternatively, INDIVA may release the cannabis extract for use by MediPharm. The Program will be established at no capital cost to INDIVA; however, MediPharm will charge INDIVA processing fees for the cannabis oil produced, and the revenue earned on sales of cannabis oil by MediPharm will be shared between MediPharm and INDIVA.

Niel Marotta, INDIVA’s President and Chief Executive Officer, said, “We are very happy to partner with MediPharm and we are excited to accelerate our offering of cannabis oil to our clients. We will continue to construct our extraction facility and lab in London, however this partnership provides near term capacity, as well as terrific long-term potential, as we prepare for the recreational market to commence, and for the market to shift towards the manufacture and sale of derivative products.”

Pat McCutcheon, MediPharm’s President and Chief Executive Officer said: “We’re very proud to provide a comprehensive oil strategy and a long-term partnership with a company with such unique genetics and proven experience and expertise in its cultivation and grow strategies.”