MediPharm Labs Corp., a company specialized in precision-based cannabinoids, is pleased to announce it has executed a supplementary agreement to its Asset Purchase Agreement with 1193269 B.C. Ltd. (o/a Shelter Cannabis) for the Shelter Cannabis Brands IP portfolio, ending any ongoing royalty payments after August 31, 2023.
Under the existing Asset Purchase Agreement, executed in March 2022, MediPharm Labs purchased the IP of Shelter Cannabis Brands. This IP has been focused in market on Wildlife Cannabis domestic dry flower and pre-roll products that are manufactured and distributed via the MediPharm sites.
This supplementary agreement allows for a significant improvement in this product line’s gross margin, which will provide flexibility for the Company to further invest in the brand to drive sales, as it continues on the path to profitability. In the last year, MediPharm has made significant improvement in its adjusted gross margin. In the last reported quarter, Q2 2023, this was approximately 21% vs negative 1% in Q2 2022.
The Company appreciates the work done by the previous owners in creating the Shelter Cannabis and Wildlife brands, and their support and flexibility through the transition of the brands to MediPharm. MediPharm continues to review every product category and selling channel to optimize margins and streamline business operations to attempt to achieve the Company goal of profitability.
About MediPharm Labs
Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a Good Manufacturing 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 and purpose-built facilities for delivery of pure, trusted and precision-dosed cannabis products for its customers. MediPharm Labs develops, formulates, processes, packages and distributes cannabis and advanced cannabinoid-based products to domestic and international medical markets. Website: www.medipharmlabs.com