Canada-headquartered cannabinoid company MediPharm Labs Corp. intends selling MediPharm Labs Australia to OneLife Botanicals.
Melbourne (Australia) based OneLife Botanicals is picking up the Australian company lock, stock and barrel aside from international contracts outside of Australia and New Zealand, which will remain with MediPharm Labs Corp.
Assuming the deal passes muster, MediPharm and OneLife Botanicals will also ink an agreement enabling the smooth transition of products and services, and it appears the pair could continue to work together on future commercial opportunities. The share purchase agreement is worth a minimum value of $6.9M AUD.
Medipharm Labs Corp. says the decision to sell was made after review of its international manufacturing platform, which identified significant potential savings in shifting all domestic and international manufacturing to its facility in Canada.
“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,” said CEO David Pidduck.
Commenting on the deal, OneLife Botanicals CEO Andrew Grant said:
“The integration of this business with our existing cultivation facility facilitates savings in capital investment, access to operational efficiencies and establishes us as a significant supplier in the Australian medicinal cannabis industry.”
Mr. Grant says OneLife intends to build on the existing customer base and develop more product distribution opportunities – and has its sights set on becoming a “formidable participant in the market”.
Medipharm Labs Australia was established in 2017 and constructed a cannabis oil extraction facility in South Gippsland, Victoria back in 2018. The company was awarded a cannabis manufacturing licence from Australia’s Office of Drug Control the following year. In 2020, it received GMP Certification and Licence to Manufacture Therapeutic Goods by Australia’s Therapeutic Goods Administration (TGA).
Also in 2020, MediPharm Labs Corp entered into a buyout agreement to acquire the remaining chunk of MediPharm Labs Australia not in its stable.
The Australian arm exported its first shipment of cannabis oil products manufactured locally to Germany in April last year. In August 2021, MediPharm Labs Australia was awarded $330,000 under the Australian Government’s $50 million Manufacturing Modernisation Fund, which was to be used to improve efficiency of its cannabis purification system and automation of the company’s primary packaging manufacturing process.