Medipharm Labs (TSX: LABS) announced a white labeling agreement with that of 1193269 B.C. Ltd. this morning, who is also more popularly known as Shelter Brand House. The white label agreement is centered on cannabis 2.0 products, with Medipharm delivering products under the “Wayfarer” brand to provincial distributors on behalf of Shelter.
The white label agreement itself is for a twelve month term which commenced in December 2019. The agreement has an option to renew, although specifics were not provided. The agreement states that Medipharm will conduct the filling, formulation, and distribution of Shelter branded vape cartridges. Medipharm will receive fees from Shelter in exchange, which are related to procurement, formulation, quality assurance, manufacturing, and distribution to provincial retailers. Medipharm will also receive a portion of sales from the products.
Essentially, it appears to be a long, round-about way of identifying that the white label agreement is essentially a royalty agreement, with Medipharm essentially providing Shelter with a portion of the revenues from the sale of product.
Sales have already commenced on the product, with vape cartridges being sent to distributors in British Columbia, Saskatchewan, and Manitoba in December.
It is unclear whom is providing the cannabis used within the Shelter-branded vape cartridges.
Medipharm Labs last traded at $3.72 on the TSX.
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See Blue to read about the man behind Shelter House:
Mark Hauk Founder & CEO of Shelter Cannabis Ltd. Victoria, British Columbia, Canada
About Founder, Saskatchewan and National Compassion Clubs | CEO & Founder, Shelter | SVP Product Development, Choom™ | President, Move the Movement Society
After a successful 14 year career in the mining and oil & gas sectors, Mark entered the cannabis space 3 years ago by founding The Saskatchewan Compassion Club, after recognizing the challenges patients in Saskatchewan faced in attempting to access medical cannabis.
Since then he has gone on to foundThe National Compassion Club, Shelter Brands, and more recently joined Choom as the SVP of Product Development.
Mark is also a co-founder and current sitting president of Move The Movement - a non-profit society committed to gathering and sharing personal cannabis success stories with others that could benefit from them.
He also continues to be passionate in supporting a number of Cannabis Substitution Programs across the country, as he believes these programs to be an invaluable harm reduction tool used on the front line of the opioid overdose crisis our country currently faces.
BARRIE, Ontario, Jan. 09, 2020 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a global leader in research-driven, pharmaceutical quality cannabis extraction, distillation and derivative product production, is pleased to announce that it has completed its first deliveries under a cannabis 2.0 white label agreement (the “Agreement”) with 1193269 B.C. Ltd., which operates as Shelter Brand House (“Shelter”), a cannabis product development company.
Through its wholly owned subsidiary MediPharm Labs Inc., the Company is providing high-quality cannabis extracts, filling services and national distribution of a line of custom-formulated Shelter vape cartridges initially under the brand Wayfarer, along with other future contemplated brands. Shelter created Wayfarer for consumers with uncompromising tastes who want the highest-calibre experience along with sleek product design.
“Being among the first licence holders to bring newly approved, quality-assured cannabis concentrate derivative products to Canadian consumers confirms the continued execution of MediPharm Labs’ platform that we’ve built over the last five years,” said Pat McCutcheon, Chief Executive Officer, MediPharm Labs. “We intend to use our proven platform to expand our white label portfolio with serial innovators like Shelter who focus on building top, quality brands for all consumers.”
First Consumer-tested Shipments Completed
In December 2019, MediPharm Labs received initial purchase orders from provincially authorized distributors for Shelter’s Wayfarer-branded, quality-assured vape cartridges. Utilizing its new Cannabis Act research licence that allows sensory testing of final products, MediPharm Labs’ Research and Development Team selected formulations for the initially launched Wayfarer products after human feedback on terpenes and final products. MediPharm Labs confirms its initial shipments of Wayfarer Northern Lights (Indica) vape cartridges were delivered into three provinces, British Columbia, Saskatchewan and Manitoba before the end of 2019.
“Shelter’s mission is to lead in both quality and innovation at every stage of bringing cannabis to market,” said Shelter’s CEO and founder, Mark Hauk. “Wayfarer cannabis vape cartridges are an outstanding example of Shelter’s custom hardware and brand development abilities. MediPharm Labs is our perfect production and distribution partner for Wayfarer.”
Agreement Terms
The Agreement, entered into in December 2019, has an initial term of 12 months, with an option to extend, and relates to the filling, formulation and distribution of Shelter-branded vape cartridges, subject to purchase orders and pricing from provincial distributors. Under the Agreement, MediPharm Labs will receive certain fees for services related to procurement, formulation, quality assurance, manufacturing and distributing to provincial retailers, along with a portion of revenue from sales of the Shelter vape cartridges.
Exhibition
Both MediPharm Labs (booth 1136) and Shelter will be exhibiting at the LIFT EXPO in Vancouver, January 9-11, 2020.
About Shelter
Shelter is a Canadian quality and innovation leader in processing, packaging and branding of cannabis products. Shelter is a consumer-focused brand and packaging development company that has, with its partners, created quality cannabis pre-rolls and vape pens under brand names Wildlife, Journey, Botany and Wayfarer. The Shelter Craft Collective creates custom partnerships with small-batch cultivators, enabling them to leverage Shelter’s portfolio of capabilities to bring their quality craft cannabis to market.
About MediPharm Labs
Founded in 2015, MediPharm Labs specializes in the production of purified, pharmaceutical quality cannabis oil and concentrates and advanced derivative products utilizing a Good Manufacturing Practices certified facility and 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 with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, sensory-tests, processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets. As a global leader, MediPharm Labs has completed commercial exports to Australia and is nearing commercialization of its Australian extraction facility. MediPharm Labs Australia was established in 2017.
For further information, please contact: Laura Lepore, VP, Investor Relations Telephone: 705-719-7425 ext 216 Email: investors@medipharmlabs.com Website: www.medipharmlabs.com
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, successfully launching additional product brands, expansion of MediPharm Labs’ platform with additional white label partners, performance of each party’s rights and obligations under the white label agreement, receipt of purchase orders for white label products, and the completion of the Australian facility. 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’ filings, available on the SEDAR website at www.sedar.com. 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.
All information contained in this press release with respect to Shelter was supplied by Shelter for inclusion herein.
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