TORONTO, June 05, 2025 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSX: LABS) (OTCQB: MEDIF) (FSE: MLZ) ("MediPharm"), a pharmaceutical company specialized in precision-based cannabinoids, announced the closing of the sale of its Hope, British Columbia facility (the “Hope Facility”) to Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) for $4.5 million in cash (the “Transaction”). In parallel, the Company is expanding annual international cultivation capacity at its EU GMP-certified facility in Napanee, Ontario (the “Napanee Facility”) by approximately 30% in 2025.
These developments underscore MediPharm’s strategic focus on operational efficiency, financial strength, and delivering premium pharmaceutical-grade cannabis products to a growing global customer base.
“This marks a significant milestone for MediPharm,” said David Pidduck, CEO of MediPharm. “We are optimizing our footprint by reducing expenses and monetizing dormant, non-core assets, while simultaneously expanding where we see the greatest potential for immediate impact on our international growth. This sale also significantly improves our cash position and provides us with additional financial flexibility to pursue our strategic growth objectives.”
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.
MediPharm has executed strategic divestiture of non-core assets alongside rigorous cost-saving initiatives to enhance efficiency and sharpen its operational and commercial focus. MediPharm has reduced operating expenses by over $40 million on an annualized basis in the past several years, compared to the combined MediPharm and VIVO Cannabis operations in the first quarter of 2022.
MediPharm’s investment in expanding cultivation capacity by approximately 30% at its EU GMP-certified Napanee facility enhances the Company’s ability to meet growing international demand for pharmaceutical cannabinoid products, particularly in Europe and Australia.
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: impacts of the Transaction to the Company’s cash position and financial status, plans for and impacts of the expansion of the Napanee Facility (the “Expansion”), the actual percentage expansion of annual international cultivation capacity at the Napanee Facility, 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 and the Expansion to the Company’s balance sheet and strategic growth objectives. 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.
