MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) has successfully closed the sale of its Australian facility announced this summer.
On Friday, the company announced the $6.3 million sale of the facility to OneLife Botanicals PTY as previously announced last July. The sale included all the specialized licensing, operational knowledge and Australian and New Zealand customers currently served by that facility.
All international contracts outside this region will remain with MediPharm Labs to be serviced from its Barrie facility.
The company mentioned that after an extensive sale process, the agreement was recognized as a strategic fit for both parties involved.
OneLife is a cannabis producer in the wellness and medical market with plans to launch CBD products across Australia and the purchase of the facility is a step towards commercialization.
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“The sale of the MediPharm Labs Australia assets improves the Company’s cash position while also reducing our cash burn. This additional non-dilutive capital allows us to continue our initiative to right-size our company and become profitable through organic and inorganic growth,” CEO David Pidduck said.
“I want to personally thank our Australian team for their dedication and professionalism through the closing of this sale. I wish them and OneLife Botanicals much success in their future business pursuits.”
Company stock dipped by 11.11 per cent on Friday to $0.08 on the Toronto Securities Exchange.