MEDIPHARM LABS Specialize in cannabis extraction... https://twitter.com/MediPharmLabs https://www.medipharmlabs.com/ WATCH THESE VIDEOS:
extraction: https://youtu.be/HAzs2xhbHgM soft gel manufacturing: https://www.youtube.com/watch?v=t9tKO_cFLnY&feature=youtu.be
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NASDAQ LISTING IMMINENT
December 30, 2019
"...MediPharm Labs Inc. (“MediPharm”) has received a licence amendment from Health Canada allowing for production to begin in the recently expanded area of its specialized manufacturing facility in Barrie, Ontario.
This amendment increases MediPharm’s licensed facility footprint by around three times, or 16,746 sq. ft., to a total of approximately 25,000 sq. ft., allowing it to productively use more of its manufacturing space for cannabis activities – including automated downstream production and packaging, cannabis quality control and testing, research and development and secure storage to support the fulfillment and distribution of new product format formulations and orders.
“This amendment is an important development and achievement for MediPharm that unlocks the value of our recent investment in advanced capabilities and expanded capacity at a very opportune time,” said Pat McCutcheon, Chief Executive Officer, MediPharm Labs. “With an increasing focus on our white label business, we can now significantly scale our platform to serve the end-to-end needs of our customers as we fulfill orders for new diversified products under Cannabis 2.0.”
The expanded facility, purpose-built to the same standards as the current GMP-approved footprint, will upon applicable GMP approvals enable MediPharm to directly increase its GMP capacity for the international medical market. Further, the expanded facility will immediately allow MediPharm to produce greater quantities of GMP product, as it can now move non-GMP activities, such as vape pen filling, into its newly licensed area.
“We are executing on a focused plan to increase exports,” said Mr. McCutcheon. “This important amendment is additive to this strategy and complements other recent developments including receipt of our first GMP certification earlier this month and completion of construction of our Australian manufacturing facility. These initiatives position MediPharm Labs to drive global sales as we address growing international market demand for high-quality pharmaceutical-grade cannabis derivative products.”
MediPharm Labs Canadian Facility Expansion
In 2019, MediPharm Labs commenced a phased plan to expand its licensed space and scale its operations in Canada within its 70,000 sq.ft. facility in Barrie, Ontario. Under new regulations, the Company was required to complete construction prior to applying for an expansion licence. Today’s announcement means MediPharm received its Health Canada licence amendment just four months after completing construction.
The recently completed first phase of expansion added 16,746 square feet, all of it now licensed. This represents a three-fold increase in total licensed footprint suitable for cannabis activities to a total of approximately 25,000 sq. ft.
The now-completed first phase of the expansion includes:
- Five new large manufacturing rooms, including two sizable fire- and explosion-containment rooms (that allow for the handling of solvents) that create scale, provide flexibility in production processes and include capabilities such as automated downstream production and packaging to fulfill end-to-end white label product orders for distribution. Automation equipment qualified by the Company’s Quality Team is onsite and expected to be operational in the coming weeks.
An expanded state-of-the-art quality control lab to support advanced cannabis product innovation and ensure strict adherence to pharma standards at every step of the process. The lab will be used by the Company’s growing R&D team to analyze terpene profiles, cannabis 2.0 products and new formulations. MediPharm will also use the lab for in-house testing of product for release, incoming product verification, process improvement testing and validation.
A second secure storage space that more than doubles the Company’s current capacity to store dry cannabis and finished goods.
Major building infrastructure updates, such as a new mechanical mezzanine for process support equipment and an updated building electrical transformer to support GMP-compliant-required equipment and future expansions.
“While we delivered excellent results in a fraction of our manufacturing footprint over the past year, this licence amendment gives MediPharm additional flexibility to fulfill committed and expected orders from our current and future customers and the confidence to add more business in diversified product lines as the market continues to evolve,” said Mr. McCutcheon. “This is a great way to end 2019 – a transformative year for our business.”
FINANCIAL HIGHLIGHTS SUMMARY
| ||Nine-months |
| ||$’000s ||$’000s ||$’000s ||$’000s |
|Revenue ||96,808 ||43,386 ||31,472 ||21,950 |
|Gross profit ||32,928 ||14,754 ||11,311 ||6,862 |
|Gross margin % ||34% ||34% ||36% ||31% |
|Net income/(loss) before tax |
|9,154 ||5,395 ||4,083 ||(325) |
| Adjusted EBITDA(1) |
|22,077 ||10,066 ||7,700 ||4,310 |
| Adjusted EBITDA margin % ||23% ||23% ||24% ||20% |
July 16 update: MediPharm Labs Provides Operational Update and Increases Average Weekly Production of Active Cannabinoid Component to 75 Million Milligrams
TORONTO, July 16, 2019 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven cannabis extraction, distillation, purification and cannabinoid isolation, is pleased to provide an update to investors on the significant strategic progress it is making, including with its successful ramp up of production capacity to supply its growing customer base...
Growing Private Label Production and White Label Platform:
MediPharm Labs has increased production of private label cannabis concentrate products and distillate supply – including CBD or THC dominant as well as balanced formulations – to meet the growing demand for specialty concentrate based consumer end products ahead of legalization of vapeables, edibles and topicals in the fall of 2019. Production and quality operations teams ramped up weekly production output to approximately 75 million milligrams of active cannabinoid component concentrate at the end of Q2 2019.
To date, MediPharm Labs has signed four significant contracts for the sale of private label cannabis concentrate including to Canopy Growth, Cronos Group and AusCann. The Company also launched its White Label platform to service direct-to-consumer brands, CPG companies and large LPs in Canada. In June 2019, MediPharm announced its first white label deal to produce a minimum of approximately two million vape pens with Ace Valley, subject to purchase orders from provincial distributors.
Increasing Production Volumes:
The number of dry cannabis suppliers and concentrate purchasers in Canada continues to increase. In turn, this has resulted in higher demand that supports MediPharm Labs’ differentiated, private label business model.
The Company announced it successfully acquired 9,000 KG of dried cannabis in the last three weeks of June 2019 expected to be processed and sold in Q3 2019, and 5,000 KG in the last two weeks of March 2019 that were processed and sold in Q2 2019.
Enhanced Governance and Quality:
To date, the Company has purchased dried cannabis from over 23 suppliers across the country. MediPharm Labs has conducted in-depth qualifications of all of its dry cannabis and product suppliers.
Potential suppliers to MediPharm Labs are subjected to rigorous scrutiny before entering into agreements which require an enhanced Quality Agreement beyond Health Canada standards. This enhanced supplier qualification aligns with our pharmaceutical-like standards for production of cannabis oil and derivative products. All suppliers and customers remain in good standing with Health Canada Licensing and Inspection division.
Broadening Domestic and Global Distribution:
During the quarter, MediPharm Labs became the only third-party concentrate manufacturer to begin shipping white label products, including bottled oil, to Provincial cannabis distributors. MediPharm Labs’ white label products can be found in three provinces including Ontario, British Columbia and Alberta. The Company expects to rollout distribution of Health Canada approved products to all remaining provinces during H2 2019.
MediPharm Labs successfully completed its first international export of commercial volume cannabis concentrate to AusCann in Australia in June 2019. The Company continues to focus on accessing and distributing its private label cannabis concentrate to global markets, including across Europe, and is working on various commercial terms.
Expanding Footprint in Canada:
At MediPharm Labs’ facility in Barrie, Ontario, the Company is adding over 25,000 square feet of purpose-built production space for filling and packing automation, new product manufacturing, cannabinoid isolation activities and specialized R&D projects. Taking a phased approach, operations in this new space are expected to come as each phase becomes approved by Health Canada during the second half of 2019.
Building Scale and Increasing Capacity:
MediPharm Labs has successfully completed several equipment automation and innovation projects. The success of these optimization projects has resulted in an increased in capacity of dry cannabis processing to 300,000 KG annually.
As a global leader in extraction with a focus on providing high quality cannabinoid concentrates, MediPharm Labs recently completed a 14-month project for an additional, fully customized large-scale extraction line. The extractor has completed its factory testing in Europe and is being shipped to the Company’s Barrie, Ontario facility. Upon completion of installation, operator training, EU GMP qualification and regulatory prestart activities, operational capacity of specialized and automated dry cannabis processing will exceed 500,000 KG annually.
New Product Development:
MediPharm Labs is continuing to evolve its product mix. The bulk of its production and revenue to date has been in high quality winterized resin. This critical input ingredient will become the key building block for future high-growth and high-margin products:
Soft Gel Caps: MediPharm Labs has focused on building scale across operations and product lines including bottled oil and gel caps. An industrial scale soft gel capsule project is underway. Equipment has been deployed, equipment training has started, and formulation work is being conducted.
Vapourizers: The Company is building the foundation to be one of the largest vaporizer cartridge manufacturers in Canada. With new regulations finalized and set to come into effect on October 17, 2019 MediPharm Labs has finalized various formulations and started vapourizer pen cartridge filling research and development trials to ensure readiness to serve current and future white-label partners.
Australia Gaining Momentum:
MediPharm Labs Australia received its manufacturing licence in May from the Australian Office of Drug Control. Construction of the facility is well underway and nearing completion with equipment ordered for installation in H2 2019. MediPharm Labs Australia is expected to have 75,000 KG of annual capacity.
Financing: The Company completed a $75 million bought deal financing to fund capital expenditures at its Canadian and Australian facilities, for domestic and international expansions, research and development and general corporate purposes. Signed a $20 million debt facility term sheet with a Schedule 1 Bank.
"MediPharm Labs is executing exceptionally well against all of our strategic operating priorities for 2019 and this will be reflected in our financial results for Q2 and beyond, "said Patrick McCutcheon, Chief Executive Officer, MediPharm Labs." I am particularly pleased with the pace of new sales, the advancements we're making in scaling up global production and the high-quality collaborations underway with industry Health Canada compliant suppliers, customers and scientific partners. I am confident that our recent momentum will continue as we strive to produce the world's best cannabis concentrates and drive future cannabis product innovation."
For further information, please contact:
Laura Lepore, VP, Investor Relations
Telephone: 705-719-7425 ext 216
MediPharm Labs Announces Addition to $1.2B MJ ETFMG Alternative Harvest ETF (USA)
Tuesday 21 May 2019
MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (FSE:MLZ) (“MediPharm Labs”) a leader in specialized, research-driven cannabis extraction and cannabinoid isolation, is pleased to announce its addition to the MJ ETFMG Alternative Harvest ETF (NYSE:MJ) (the “Fund”) with approximately US$1.22 billion in assets currently under management.
TORONTO, May 22, 2019 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (FSE:MLZ) (“MediPharm Labs”) a leader in specialized, research-driven cannabis extraction and cannabinoid isolation, is pleased to announce it has been selected by The Mount Sinai Hospital, New York City (“Mount Sinai”), to participate in a clinical trial dedicated to developing a non-addictive oral gelcap medication for the treatment of opioid use disorder through anti-anxiety intervention utilizing hemp-derived CBD combined with a proprietary formula (the “Formula”). This will be a U.S. and international large-scale, multi-site clinical trial that will include at least 500 patients spanning the United States, Canada, Australia, Europe and Jamaica.
The clinical trial will be led by renowned principal researcher, Dr. Yasmin L. Hurd, PhD, the Ward-Coleman Chair of Translational Neuroscience at the Icahn School of Medicine at Mount Sinai, New York City, and Director of the Center for Addictive Disorders for the Mount Sinai Behavioral Health System.
MediPharm Labs is also pleased to be involved in the clinical trial, directed by Mount Sinai, with Courtney Betty of Timeless Herbal Care Inc. (“Timeless Herbal”), a fully integrated licensed producer of medicinal cannabis in Jamaica. MediPharm Labs will be the exclusive manufacturer of a proprietary hemp-derived CBD oral gelcap medication utilizing the Formula provided by Timeless Herbal for all phases of the clinical trials related to this study that will allow researchers to test an investigational product containing CBD active ingredient.
MediPharm Labs and Timeless Herbal will jointly own any intellectual property developed during the clinical trials (“Developed IP”), excluding the Formulation, and MediPharm Labs will be the exclusive manufacturer for products resulting from this study.
“We are extremely pleased MediPharm Labs has been selected to be involved in this landmark, clinical trial to properly evaluate the potential benefits of CBD and that can lead to important medical therapies for millions suffering from opioid use disorder,” said Patrick McCutcheon, CEO, MediPharm Labs. “We are committed to providing consistent, high quality, pharma-like active ingredients to support advancements in scientific CBD drug development.”
“I am proud to be collaborating with MediPharm Labs, a valuable partner who exemplifies true commitment to research and supporting rigorous scientific research on the potential medical uses of CBD,” said Dr. Yasmin Hurd, Mount Sinai Hospital. “MediPharm Labs was selected as our preferred provider to participate in this critical study largely based on its team’s deep experience in pharma and clinical research, and ability to execute and provide safe, effective and precisely doseable, high quality products.”
Dr. Hurd continued, “The vast number of lives lost, societal burdens and marked health toll caused by opioid addiction continues to grow worldwide and requires bold and unique actions to curb this tidal wave of the opioid epidemic. This consortium strategy is founded on results from established clinical trials that now give us an important opportunity to further advance scientific research in large populations. This is a critical path for the development of true CBD medicinal products that meet FDA approval to treat opioid addiction.”
The arrangement remains subject to MediPharm Labs, Mount Sinai and Timeless Herbal entering into a clinical trial agreement, MediPharm Labs and Timeless Herbal entering into a separate intellectual property agreement and certain regulatory approvals.
MAY 17, 2019
Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) has shipped 6,000 40 ml units of its SYNC 25 CBD oil to the British Columbia Liquor Distribution Branch (BCLDB). The Emerald-branded pure CBD oil offers consumers a non-THC, smoke-free product alternative.
“We are pleased to offer our new Emerald-branded wellness product SYNC 25 to the recreational marketplace in British Columbia,” said Dr. Avtar Dhillon, President and Executive Chairman of Emerald. “The introduction of SYNC 25 marks the next step in our product growth strategy to develop innovative and quality consumer products that respond to a growing demand while providing higher profit margins.”
The SYNC 25 CBD oil product was extracted by MediPharm Labs Inc...
May 15, 2019
MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (FSE:MLZ) (“MediPharm Labs”) a leader in specialized, research-driven cannabis extraction and cannabinoid isolation, is pleased to announce that its wholly-owned subsidiary, MediPharm Labs Inc. (“MediPharm”), has signed a committed term sheet for a $20 million senior secured revolving credit facility ("Credit Facility") from a Canadian Schedule 1 Bank. The Credit Facility is intended to provide MediPharm Labs access to non-dilutive capital to fund planned growth, as well as for general corporate and working capital purposes.
The Credit Facility consists of a $15 million operating loan with a one-year term and a $5 million non-revolving equipment term loan with a three-year term. The Credit Facility, once closed, will bear interest at the Schedule 1 Bank’s prime lending rate plus 1.85% per annum.
“This commitment marks yet another important milestone that will provide access to non-dilutive capital to support our plans for accelerated growth as we continue to ramp up operations ahead of expected legalization of broader concentrate-based products this fall,” said, Patrick McCutcheon, CEO, MediPharm Labs. “We are pleased to have a leading financial institution support MediPharm Labs as we continue to innovate and expand our private and white label offerings to serve a growing demand for high-quality, adult-use and medical cannabis products.”
14 MAY 2019
Cronos Group and MediPharm Labs Enter Additional Multi-Year Tolling Arrangement
TORONTO, May 14, 2019 (GLOBE NEWSWIRE) -- Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Company”), is pleased to announce that it has entered into a multi-year supply agreement with MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (“MediPharm Labs”).
MediPharm Labs will supply Cronos Group with approximately $30 million of high-quality private label cannabis concentrate over 18-months, and, subject to certain renewal and purchase options, potentially up to $60 million over 24-months. In addition, Cronos Group and MediPharm Labs have entered into a multi-year tolling agreement, where Cronos Group will supply bulk cannabis to MediPharm Labs’ state of the art extraction facility in Barrie, Ontario, to fulfill certain additional processing needs of the Company.
(info from earlier this year below...)
Key Q1 2019 Financial and Year-to-Date Highlights
-Revenue of $22 million, a 115% increase over Q4 2018, leading the Canadian cannabis extraction-only industry https://www.newcannabisventures.com/cannabis-extractor-medipharm-labs-generates-q4-revenue-of-10-2-million/
-Gross Profit of $6.9 million, Gross Margin 31%
-Adjusted EBITDA of $4.3 million, a 102% increase over Q4 2018, Adjusted EBITDA margin of 20%
-Strong, positive cashflows from operations
-Q1 revenue includes $7.6 million revenue for initial shipment of large private label cannabis oil contract with a large Licensed Producer
-Acquired more than 5,000 kg (or 5 million grams) of dried cannabis in last 2 weeks of Q1 from multiple Licensed Producers to fulfill robust demand for private label offerings
-Continued significant capital investment, further increasing scale of operations to enhance efficiencies through automation, increase throughput capacity and new equipment for diversified product lines including distillates, vapeables, softgel caps and bottled cannabis oil
-Received over $7 million in cash proceeds from warrant exercises subsequent to March 31, 2019
2018 was a breakthrough year for MediPharm Labs. We became the first fully Licensed Producer to specialize solely in extraction and quickly scaled operations to emerge as the dominant market leader in the manufacturing of high quality, pharmaceutical-like production of cannabis derivative products – the future of cannabis
As leading extraction specialists, we demonstrated our ability to rapidly expand our footprint and achieve significant revenue and positive operating cash flow just weeks after receiving our sales License, and our strong operations have continued into 2019. The strength of this performance validates our uniquely focused strategy and investments. We are proud that the MediPharm Labs team stands out among the top global players in the cannabis industry producing tangible results with significant future potential.
2019 Year-to-Date Highlights
-Executed Private Label Sales Agreements in place valued in excess of $85 million over 15-month period from December 2018
-Executed large Private Label cannabis oil sale for $35 million with additional $13.5 million purchase option over 13-month period
-Signed a 3-year Tolling Agreement with TerrAscend Corp.
-First extraction only LP to sign an International Private Label Sale Agreement with AusCann Group Holdings Ltd. – Export of cannabis oil from Canada to Australia for the manufacturing of hard-shell cannabinoid capsules
-Launched White Label Solutions Platform to extract, purify, formulate, process and distribute for LP’s, direct-to-consumer brands and non-cannabis consumer packaged goods (CPG) companies for provincial distribution
-Signed first White Label agreement to formulate, process and distribute tincture bottles on behalf of an existing brand commencing H2 2019
-Acquired over 5,000 KG of dried cannabis for Private Label cannabis oil production in final two weeks of March
-Initiated trading on OTCQB under symbol “MLCPF” and FSE under symbol “MLZ”
(Mr. McCutcheon continued)... “Looking ahead, we are now working on an ambitious, well-planned agenda for 2019 that will enable MediPharm Labs to extend our first-mover advantage. We are ramping up production, adding capacity, targeting EU GMP certification, expanding product offerings, developing R&D and IP, signing new sales agreements, and executing on our M&A and international growth pipeline.”
“Most importantly, we see all of this as a starting point. We expect to accelerate our growth globally as the size of our addressable market increases and we strengthen our foothold domestically with the expected legalization of vapeables, edibles, beverages and topicals providing a strong growth trajectory in Canada. We will continue to capitalize on the numerous opportunities available to us through effective capital deployment and continued expert execution to create shareholder value for the long term.”
2019 Strategic Priorities
Forge additional domestic and International sales and supply agreements – Utilizing a first-mover and other proprietary advantages, the Company is focused on procuring cost efficient, bulk dried cannabis supply, increasing wholesale Private Label cannabis concentrate (crude resin and distillate) production and value-added products, services and tolling to win new business domestically and internationally.
Expand White-Label Solutions Platform Including Formulation, Processing and Distribution Services – Expected legalization of vapeables, edibles, beverages and topicals in October 2019 is also expected to expand the Company’s addressable market and act as a catalyst to encourage a broad array of direct-to-consumer brands and non-cannabis consumer packaged goods companies to seek partners like MediPharm Labs for formulation, processing and provincial distribution.
Increase cGMP Production Capacity – The Company is on track with the installation and commissioning of 2 additional primary extraction lines at its Barrie facility that are expected to increase annual processing capacity to 250,000 kg over a total of 7 extraction lines. Utilizing cGMP methodology, multiple extraction lines provide flexibility to dedicate to specific customer batches and significantly enhance productivity. Flexibility over multiple extraction lines will be transformative, providing a continued competitive advantage in the cannabis market.
Achieve European Union GMP Certification at Barrie Facility – Expect to achieve certification in the H2 2019 enabling the Company to serve substantial European demand.
Complete First International Facility in Australia – Australian centre of excellence is expected to be commissioned in H2 2019, pending licensing, and will act as hub to access Asia-Pacific regions. The facility is designed to produce to cGMP standards with annual extraction capacity of approximately 75,000 kg of dried cannabis. The Australia region provides a strong backdrop for cultivation given more favorable farming conditions where the Company expects to procure locally sourced lower-cost supply inputs for production.
Expand Secondary Extraction Capabilities – Advancing industrial-scale distillation and commercial chromatography capabilities to produce active pharmaceutical ingredients that require cannabinoid purity of at least 99.9%. Development is underway for specialized, proprietary chromatography processing with trials to commence H2 2019.
M&A and Joint Venture Opportunities – The Company has established a robust pipeline of opportunities to replicate its unique business model in other jurisdictions and complementary acquisitions to further enhance and accelerate organic growth.
2018 Financial Highlights
All dollar amounts are expressed in Canadian dollars unless otherwise stated.