BARRIE,ON July 25, 2022 (CISION NEWSWIRE) – MediPharm Labs Corp. (TSX: LABS) (OTCQX:MEDIF) (FSE: MLZ) (“MediPharm”, “MediPharm Labs” or the “Company”) apharmaceutical company specialized in precision-based cannabinoids, todayannounced that it has been awarded a favourable summary of judgement in theOntario Court of Justice in connection with a supply agreement dispute in theamount of $9.8M.
OnJanuary 24, 2020, MediPharm Labs filed a statement of claim (“Claim”) in theOntario Superior Court of Justice against one of its long-term customers ofcannabis concentrates. The Claim related to, among other things, the payment ofoutstanding amounts due to the Company for products shipped to and received bythe customer and deposits owed to the Company for committed amounts not yetshipped.
OnFebruary 26, 2020, the defendant in the Claim filed a statement of defense andcounterclaim. The Ontario Court of Justice has dismissed this counterclaim.
Thissummary judgement and subsequent payment, and recent conditional sale of theCompany’s Australian facility, will add over $16M in cash, strengthening thebalance sheet.
David Pidduck,CEO of MediPharm Labs commented, “In the early days of thenascent cannabis industry many companies faced risks in collecting largereceivables. This summary judgement will allow us to collect this $9.8M, whichwill dramatically strengthen our balance sheet. MediPharm now has manycustomers across multiple channels and our accounts receivable are healthy. Thecollection of this cash will significantly improve MediPharm’s cash positionand give us flexibility to consider M&A opportunities.”
Founded in2015, MediPharm Labs specializes in the development and manufacture ofpurified, pharmaceutical-quality cannabis concentrates, active pharmaceuticalingredients (API) and advanced derivative products utilizing a GoodManufacturing Practices certified facility with ISO standard-built clean rooms.MediPharm Labs has invested in an expert, research driven team,state-of-the-art technology, downstream purification methodologies andpurpose-built facilities with five primary extraction lines for delivery ofpure, trusted and precision-dosed cannabis products for its customers. Throughits wholesale and white label platforms, MediPharm Labs formulates, develops(including through sensory testing), processes, packages and distributescannabis extracts and advanced cannabinoid-based products to domestic andinternational markets.
In 2021,MediPharm Labs received a Pharmaceutical Drug Establishment Licence from HealthCanada, becoming the only company in North America to hold a domestic GoodManufacturing Licence for the extraction of natural cannabinoids. The Company carries out itsoperations in compliance with all applicable laws in the countries in which itoperates.
For furtherinformation, please contact:
MediPharm Labs InvestorRelations
Telephone: +1 416.913.7425 ext. 1525
Cautionary Note Regarding Forward-LookingInformation:
This newsrelease contains “forward-looking information” and “forward-looking statements”(collectively, “forward-looking statements”) within the meaning of theapplicable Canadian securities legislation. All statements, other thanstatements of historical fact, are forward-looking statements and are based onexpectations, 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 orperformance (often but not always using phrases such as “expects”, or “does notexpect”, “is expected”, “anticipates” or “does not anticipate”, “plans”,“budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” orvariations of such words and phrases or stating that certain actions, events orresults “may” or “could”, “would”, “might” or “will” be taken to occur or beachieved) are not statements of historical fact and may be forward-lookingstatements. In this news release, forward-looking statements relate to, amongother things, statements regarding: collection of the court award, the need toraise capital through equity or debt vehicles, and MediPharm’s ability to executeM&A opportunities in the future. Forward-looking statements are necessarilybased upon several estimates and assumptions that, while considered reasonable,are subject to known and unknown risks, uncertainties, and other factors whichmay cause the actual results and future events to differ materially from thoseexpressed or implied by such forward-looking statements. Such factors include,but are not limited to: general business, economic, competitive, political andsocial uncertainties; the inability of MediPharm Labs to obtain adequatefinancing; the delay or failure to receive regulatory approvals; and otherfactors discussed in MediPharm Labs’ filings, available on the SEDAR website atwww.sedar.com. There can be no assurance that such statementswill prove to be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly, readersshould not place undue reliance on the forward-looking statements andinformation contained in this news release. Except as required by law,MediPharm Labs assumes no obligation to update the forward-looking statementsof beliefs, opinions, projections, or other factors, should they change.