TORONTO, May 22, 2025 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSX: LABS) ("MediPharm" or the "Company"), a pharmaceutical company specialized in precision-based cannabinoids, is pleased to announce the removal of all conditions precedent, related to its previously-announced agreement (the “Purchase Agreement”) for the sale of MediPharm’s facility in Hope, BC, (“Hope Facility”) to Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) for $4.5 million in cash (the “Transaction”).
With these conditions now met, the $4.5 million sale of the Hope Facility remains on track to close in June 2025. The Transaction will bolster MediPharm’s already strong cash position and virtually debt-free financial status.
David Pidduck, CEO of MediPharm commented, “The $4.5 million in cash proceeds from divesting non-core assets supports our roadmap to deliver long-term value for shareholders and partners, enabling continued focus on accelerating international growth and exploration of key acquisition opportunities.”
The Hope Facility was acquired as part of the successful VIVO Cannabis Inc. acquisition in 2023, and the Company ceased all Hope Facility commercial activities in 2024, consolidating key operations at its other facilities. The consolidation of operations was all part of MediPharm’s ongoing strategy to reduce operating and overhead costs and monetize redundant assets. The aggregate value of the Company’s asset sales since 2022, including the Hope Facility, total approximately $14 million, all of which has contributed to reducing costs and boosting the Company’s balance sheet.
Since the second quarter of 2022, when implementation of this strategy began, to the first quarter of 2025, MediPharm has reduced operating and overhead costs by approximately $42 million dollars on an annualized basis.
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.
In 2021, MediPharm Labs received a Pharmaceutical Drug Establishment License from Health Canada, becoming the only company in North America to hold a commercial-scale domestic Good Manufacturing Practices License for the extraction of multiple natural cannabinoids. This GMP license was the first step in the Company’s current foreign drug manufacturing site registration with the US FDA.
In 2023, MediPharm acquired VIVO Cannabis Inc., which expanded MediPharm’s reach to medical patients in Canada via Canna Farms medical ecommerce platform, and in Australia and Germany through Beacon Medical Australia PTY Ltd. and Beacon Medical Germany GMBH. This acquisition also included Harvest Medical Clinics in Canada which provides medical cannabis patients with Physician consultations for medical cannabis education and prescriptions.
The Company carries out its operations in compliance with all applicable laws in the countries in which it operates.
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: timing for the closing of the Transaction, impacts of the Transaction to the Company’s cash position and financial status, plans for long-term value for shareholders and partners, acceleration of international growth and acquisition opportunities, future reduction of the Company’s costs, and future impacts of the Transaction to the Company’s balance sheet. 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’ continuous disclosure filings, available on the SEDAR+ website at www.sedarplus.ca. 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.
