TORONTO, June 19, 2019 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”), a leader in specialized, research-driven cannabis extraction and cannabinoid isolation, is pleased to announce a white label agreement dated June 18, 2019 (the “Agreement”) with AV Cannabis Inc. (d/b/a Ace Valley), the owner of the top-rated cannabis brand in Canada “Ace Valley”, to launch a premium line of cannabis extract-based vape pens to Canadian consumers. Through its wholly owned subsidiary MediPharm Labs Inc., the Company will provide high-quality cannabis extracts, filling services and national distribution of a line of custom-formulated Ace Valley-branded vape pens. Ace Valley will leverage its leading brand traction and product strategy expertise to design, brand and market the products.
“We are thrilled to be partnering with Ace Valley, to launch ultra-premium cannabis products that utilize MediPharm Labs’ high-quality cannabis concentrate,” said Pat McCutcheon, Chief Executive Officer of MediPharm Labs. “As more direct-to-consumer brands look to enter the rapidly growing cannabis consumer market, we will leverage our leadership position, extraction expertise and technology to produce innovative and advanced cannabis oil derivatives and build a diversified portfolio of high-margin, value add, white label products.”
“We’re on a mission to build the best brand platform in cannabis,” said Mike Wagman, Chief Executive Officer of Ace Valley. “Our entry into the premium vape market is a big part of our strategy and we found the perfect production partner in MediPharm Labs, the leader in cannabis extraction and purified cannabis concentrates in Canada.”
The initial term of the Agreement is three years and relates to the production of a minimum of approximately 2 million Ace Valley-branded vape pens, subject to purchase orders and pricing from provincial distributors. Vape pens represent the fastest growing cannabis product category by total dollars sold in California according to BDS Analytics data and are expected to be sold legally in Canada in late 2019. Through this partnership, MediPharm Labs and Ace Valley are well-positioned to bring high-quality vape pens to Canadian consumers and to lead this important and exciting new category.
Under the Agreement, the Company will receive certain fees for services related to procurement, quality assurance, manufacturing and distributing to provincial retailers, along with a portion of revenue from sales of the Ace Valley-branded vape pens. Supply of vape pens under the Agreement remains subject to the Company completing the build-out of its vape-pen line, receiving the requisite regulatory approvals for the sale of extracts, and receipt of purchase orders from provincial distributors and/or retailers.
About Ace Valley
Ace Valley is a leading recreational cannabis brand. Their curated portfolio of pre-roll and dried flower products launched on October 17, 2018 in Ontario and British Columbia. Since then, Ace Valley has become the #1 rated brand in Canada by consumers according to Lift & Co. data and an early category leader in pre-roll sales in Ontario. Through its partnership with MediPharm Labs, Ace Valley will leverage its product strategy expertise, consumer insights and loyal community of fans to provide Canadian consumers with a line of premium all-in-one vape pens.
About MediPharm Labs Corp.
Founded in 2015, MediPharm Labs has the distinction of being the first company in Canada to become a licensed producer for cannabis oil production under the ACMPR without first receiving a cannabis cultivation license. This expert focus on cannabis concentrates begins in its purpose-built laboratory designed to incorporate cGMP (current Good Manufacturing Practices) workflow and ISO standard-built clean rooms and critical environments, allowing MediPharm Labs to produce purified, pharmaceutical-like cannabis oil and concentrates for advanced derivative products. MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream extraction methodologies and purpose-built facilities to deliver pure, safe and precisely-dosed cannabis products to patients and consumers. MediPharm Labs’ private label program is a high margin business for the company, whereby it opportunistically procures dry cannabis flower and trim from its numerous product supply partners, to produce cannabis oil concentrate products for resale globally on a private label basis.
For further information, please contact:
Laura Lepore, VP, Investor Relations
Telephone: 705-719-7425 ext 216
Email: investors@medipharmlabs.com
Website: www.medipharmlabs.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXV) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, 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 or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, the formulation, manufacturing and supply of vape pens and related regulatory approvals and provincial pricing and purchase orders. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm Labs to obtain adequate financing; the delay or failure to receive regulatory approvals: and other factors discussed in MediPharm Labs’ filings, available on the SEDAR website at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm Labs assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f0d08be2-4690-4e31-9a5a-021d6deddb1d