MediPharm Labs Files Suit Against Unnamed Licensed Producer

MediPharm Labs Corp. LABS MEDIF MLZ said Monday its subsidiary MediPharm Labs Inc. has sued an unnamed licensed producer, filing a statement of claim in the Ontario Superior Court of Justice.

Among other things, the allegation pertains to the payment of outstanding amounts of around $9.8 million pursuant to the private label cannabis oil sale agreement announced back in February.

According to a MediPharm press release from last February, the company signed a sales agreement with a licensed producer to supply around $35 million of private label cannabis oil concentrates. Under the agreement, the licensed producer agreed to initial purchase of $7.66 million of cannabis oil concentrate in February, and a minimum of an extra $27 million of cannabis oil concentrate over the 12 months since March 2019.

The agreement included an option to buy an additional $13.5 million worth of the same product, over the same period, with the potential value of the agreement reaching $48 million until February 2020.

MediPharm Labs focuses on the manufacturing of pharmaceutical quality cannabis oil and concentrates, and derivative products in a Good Manufacturing Practices certified facility and ISO standard built clean rooms.

MediPharm Labs’ shares closed Friday’s session at $2.84.

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