- MediPharm (LABS) has agreed to sell subsidiary MediPharm Labs Australia to OneLife Botanicals
- OneLife is an emerging player in Australia’s cannabis-based wellness and medical products space
- Consideration will be for a minimum of C$6.2M
- The sale is meant to facilitate MediPharm’s path to profitability, with the company also considering a shift to 100-per-cent domestic manufacturing for greater cost savings
- MediPharm Labs develops and manufactures pharmaceutical-grade cannabis concentrates, active pharmaceutical ingredients and advanced derivative products
- MediPharm (LABS) is up by 8.33 per cent trading at $0.065 per share
MediPharm (LABS) has agreed to sell subsidiary MediPharm Labs Australia to OneLife Botanicals.
OneLife is an emerging player in Australia’s cannabis-based wellness and medical products space. It plans to launch OTC CBD products across the country and purchasing MediPharm’s fully operational facility expedites its timing to commercialization.
Consideration will be for a minimum of C$6.2M.
The agreement includes the subsidiary’s assets, specialized licensing, operational knowledge, and the Australian and New Zealand customers served by the subsidiary.
All international contracts outside of Australia and New Zealand remain with MediPharm Labs to be serviced through its Barrie GMP facility.
The parties expect the transaction to close within 90 days.
In other news, the company recently completed a review of its international manufacturing platform, identifying considerable potential savings by shifting all manufacturing to its Canadian facility. More concrete details about these discussions aren’t available at this time.
“This sale represents a major milestone for MediPharm Labs as it continues to focus on rightsizing the business to achieve profitability. As we look to maintain our strong cash balance, this transaction paired with corporate restructuring completed in June 2022 should allow us to reduce our quarterly burn rate as we improve sales,” stated David Pidduck, MediPharm’s CEO.
MediPharm Labs develops and manufactures pharmaceutical-grade cannabis concentrates, active pharmaceutical ingredients and advanced derivative products.
MediPharm (LABS) is up by 8.33 per cent trading at $0.065 per share as of 9:38 am EST.
