Medipharm Labs Corp (TSE: LABS) (OTCMKTS: MEDIF) (FRA: MLZ) will no longer be selling its subsidiary’s Ontario cultivation facility due to the proposed buyer failing to live up to their end of the deal. The sale was previously announced in December.
Kensana Health, a biotech company with an interest in medical cannabis research and other plant medicines, was planning to purchase the complex on the outskirts of Napanee for C$5.5 million. But, it did not meet certain unspecified obligations, according to MediPharm.
“Kensana Health did not meet certain agreed-upon terms and conditions within the timelines set out therein,” MediPharm explained.
The facility, built by Conviron and run by the company’s subsidiary ABcann Medicinals, has been in operation since 2014. It is capable of producing about 75 kilograms of medical cannabis flower per month.
“We will continue to use the Napanee Facility to capitalize on international opportunities in 2025,” MediPharm chief executive, David Pidduck, said in a press release on Feb. 10 announcing termination of the arrangement. MediPharm will get to keep certain non-refundable fees from Kensana.
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MediPharm sets its sights on Brazil
The South American nation’s industry is poised for robust growth in the coming years, analysts have predicted. The Ontario cannabis operator aims to capitalize on it.
Last month, MediPharm secured a major supply deal with Brazil’s long-established pharmaceutical operator Laboratório Teuto. The extract producer will provide the Brazilian company with a steady stream of its cannabinoids.
In Q3 results, MediPharm reported a 37 per cent year-over-year spike in global medical cannabis revenue. The supplier is also known to export product to Australia, Germany, Peru and Barbados.
This Canadian extraction expert was founded in 2015 by a group of Ontario marijuana experts. It specializes in producing high-grade oils and concentrates at its flagship facility in Barrie.
In 2021, MediPharm became the first North American cannabis operator to receive a Pharmaceutical Drug Establishment License from Health Canada for the extraction of multiple cannabinoids.
rowan@mugglehead.com
