CANOPY GROWTH COMPLETES STRATEGIC EXTRACT SUPPLY
AGREEMENT WITH MEDIPHARM LABS
November 29, 2018
SMITHS FALLS & BARRIE, ON— — Canopy Growth Corporation (“Canopy Growth” or the “Company”)
(TSX:WEED, NYSE:CGC) and MediPharm Labs Inc. (“MediPharm”), a specialized cannabis extraction business
licensed under the Cannabis Act, and a wholly owned subsidiary of MediPharm Labs Corp. (TSXV:LABS)
(together, the “Companies”) have entered into a strategic supply agreement dated November 29, 2018.
Under the 18-month agreement, MediPharm will supply up to 900kg of cannabis extract for sale to Canopy
Growth and its subsidiaries. Canopy Growth has committed to purchasing a minimum of 450kg with an option
to purchase an additional 450kg.
“As the industry matures we are seeing exciting businesses like MediPharm establish specialized skill sets that
will drive the industry forward. Extraction is now and will continue to be an opportunity to develop expertise
and IP,” said Bruce Linton, Chairman & Co-CEO, Canopy Growth. “We continue to develop our own capacity in
this area and are pleased to work with MediPharm, a leading team that has demonstrated it shares this vision.”
Management of both Companies agree that today’s announcement demonstrates a meaningful increase in total
supply in the market and continue to believe that licensed capacity across Canada is capable of meeting the
needs of the Canadian recreational and medical markets. This agreement will establish an early-mover
advantage for both Companies to meet an immediate and unmet need across the country for value-add
products such as Softgels.
“We are thrilled to work with Canopy Growth, the world’s leading cannabis producer, to deliver the highest
quality cannabis oil concentrates for medical patients and recreational consumers,” said Pat McCutcheon,
MediPharm Labs, President and Chief Executive Officer. “This sales agreement serves as a strong endorsement
of MediPharm’s industry leading extraction-only business model.”
The ability to concentrate and stabilize cannabinoids in extract adds stability to the supply chain and increases
options on future supply fluctuation as consumer preferences evolve. This is a nimble model that benefits both
parties and Canadian consumers. As MediPharm finalizes its GMP certification, Canopy Growth will explore
export opportunities as a part of this strategic agreement.
Here’s to Future Growth.
For further information, please contact:
Laura Lepore, Vice President, Investor Relations and Communications
Email: investors@medipharmlabs.com
Telephone: 705-719-7425 Ext. 216
