MediPharm Labs Corp., a company specialized in precision-based cannabinoids, is pleased to announce it has now received $7.27 Million in gross cash proceeds from the settlement agreement announced on October 2, 2023 (the “Settlement Agreement”) to resolve a claim in connection with a commercial agreement dispute. Additional consideration includes products and services described below.
On October 2, 2023 MediPharm and Tilray came to a mutually agreeable resolution and established a long-term supply relationship. Following the Settlement Agreement, MediPharm has now received $7.27 Million in cash consisting of:
- $3 Million cash payment.
- 1,573,152 total Tilray common shares that have been sold for gross proceeds of $4.27 Million.
Non-cash elements also included in the Settlement Agreement are ongoing product considerations:
- § $1,000,000 in Tilray products (including but not restricted to high-quality flower and extractable biomass).
- § $500,000 four-year supply agreement to provide Tilray with MediPharm products and services.
MediPharm has already started working closely with Tilray management to add MediPharm Labs products to Tilray’s Medical platform, and to qualify the most appropriate products to be sourced from Tilray.
The long-term supply agreement allows MediPharm to establish a positive ongoing business relationship with a global leader in the cannabis industry. This supply agreement allows Tilray to access MediPharm’s unique pharmaceutical products and services both domestically and internationally, including products produced under the Company’s US FDA Foreign Drug Site registration and Canadian Drug Establishment License
This non-dilutive cash infusion further strengthens the Company’s balance sheet. MediPharm’s cash balance as of October 20, 2023 was approximately $19.5 Million. In addition, MediPharm has less than $3M of debt and full ownership of its assets. Management believes this gives MediPharm a very strong position to continue to invest in the pharmaceutical and clinical pipelines, and to thoughtfully consider approaches to the many available consolidation opportunities in the industry.
David Pidduck, CEO of MediPharm Labs commented, “With a Q2 burn rate of about $3M per quarter, and this recent cash settlement, we are now in an even stronger position to consider organic and inorganic growth investments.”
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.
