MediPharm Labs Inc.

Supplying Canada with Pharma-Grade Cannabis

This profile is part of a paid investor education campaign.*

Overview

 

MediPharm Labs Inc. is a leading B2B Canadian cannabis extractor, producing purified pharma-grade cannabis oil and concentrates for the development of cannabinoid derived products. As part of their B2B model, MediPharm Labs plans to supply raw materials, formulations, processing and packaging for ready-to-sell advanced derivative products. The first Canadian company to become a licensed producer of cannabis oil under the Access to Cannabis for Medical Purposes Regulations (ACMPR) without first being a licensed cultivator, MediPharm Labs is focused on bringing pharma-grade products to the adult-use and medical cannabis industries in Canada. The company expects to receive its License to extract and import medical cannabis products in Australia by Fall 2018 and to have its mirror facility operational in Australia by March 2019.

The company’s facilities host state-of-the-art technology with a strict adherence to pharma-grade standards to ensure a quality product. Currently, its facility can process 100,000 kilograms of dry cannabis per year. The currently licensed portion of the building has the space to grow the company’s processing capacity to over 250,000 kilograms per year by Q4 2018. Additionally, the company will be providing white label and contract processing services to licensed producers in Canada. MediPharm Labs has applied for their sales license as well.

MediPharm Labs Inc. is following the global trend in the medical cannabis industry which sees sales moving away from dry flower due to the long-term effects it can have on an individual’s health when smoked. As a result, many doctors and patients are likely to turn to cannabis-derived oil as an alternative because it is easier to precisely dose and does not come with the risks associated with smoking.  

MMJ PhytoTech Ltd. (ASX:MMJ) is an Australian company with a diversified portfolio in Australia’s emerging cannabis market and is a strategic shareholder in MediPharm  Labs. PowerOne Capital Markets Limited is also a strategic investor and co-lead the company’s concurrent financing for its going public transaction, which had a target of $15 million but raised over $22.3 million for MediPharm Labs. Important to note, MediPharm Lab’s Management team all own shares and have increased share holdings and investment in the company at each financing opportunity.

Company Highlights

  • Primarily focused on producing pharma-grade cannabis oil and concentrates.
  • Secured supply stream of cannabis to process.
  • Current processing capacity of 100,000 kilograms of dry cannabis flower or trim per year; the largest extraction footprint in Canada.
  • Planning to increase processing capacity of 250,000 kilograms of dry cannabis per year by Q4 2018.
  • Operational in Australia by March 2019.
  • MMJ Phytotech and PowerOne Capital are strategic shareholders.
  • Management owns shares and is always looking to increasing their investment in the company.
  • The company’s laboratory and manufacturing rooms have been constructed to cGMP standards with ISO rated clean rooms and are operational.
  • Over $7 million investment in build-out of critical environment labs and acquisition of state-of-the-art cannabis extraction, fractionation, and distillation equipment.
  • Secured supply stream of dry cannabis to process. Year-long Cannabis Concentrate Program Agreements are in place with Licensed Producers James E. Wagner Cultivation Corporation and 6779264 Manitoba Ltd. (O/A Bonify), while in negotiation and finalizing additional agreements with several other Licensed Producers.
  • Research-driven, bio-pharmaceutical team led by Dr. Chris Talpas, renowned chromatography expert.
  • Anticipate receiving License to extract and import medical cannabis products in Australia by Fall 2018. Expect mirror facility in Australia to be operational by March 2019.
  • Management owns shares and has increased share holdings and investment in the company over time.

The MediPharm Labs Purity Standard

MediPharm Labs is focused on bringing European current Good Manufacturing Practices (cGMP) to the cannabis industry. The company achieves this international standard for quality by developing pharma-grade products with state-of-the-art technology and facilities.

Pharma-grade products

MediPharm Labs uses international pharmaceutical standards for their cannabis products. The company’s two founders have backgrounds in healthcare and pharmaceuticals and are respected for strictly adhering to pharmaceutical standards, for creating replicable manufacturing processes and maintaining critical environments.

MediPharm Labs is focused on the extraction of cannabinoids and the development of cannabinoids into oil-based products. This focus is aimed at addressing a future medicinal cannabis market that relies less on dry flower and more on cannabis oils. As Smoking has the potential to harm an individual’s lungs and can lead to long term health complications, doctors will be more likely to prescribe more precisely-dosed and less-harmful extracts.

Technology and Facilities

MediPharm Labs has invested in the technology and expertise needed for extraction, chromatography, formulation and cGMP best practices.

Supply of Cannabis

MediPharm Labs is solely focused on the extraction, purification and isolation of cannabis elements. The company obtains its supply of cannabis from a multitude of Licensed Producers from within Canada and when legislation allows, from cultivators internationally. Due to not being a cultivation company, MediPharm Labs is not constricted by cyclical growing seasons, which allows for a consistent cash flow and improves inventory control.

Currently, MediPharm Labs can process 100,000 kilograms of dry cannabis per year with their laboratory capable of producing concentrates every day of the week. However, the company is planning to increase its processing capacity to 250,000 kilograms of dry cannabis by Q4 2018.

B2B Model

MediPharm Labs will be implementing a B2B model with the goal of providing contract processing of cannabis for licensed producers once they have their sales license. The company processes the dried cannabis flower supplied to it into a pharma-grade cannabis oil, which is then supplied to qualified cannabis companies for sale under their own proprietary brands.

Expansion Opportunities

MediPharm Labs is looking to take it business model across the globe, especially to Australia, South America and Europe, to ensure that cannabis users are receiving a purified cannabis product.

Australia

MediPharm Labs’ subsidiary, MediPharm Labs Australia Pty Ltd, is currently constructing a 1,000-square-meter state-of-the-art extraction facility which will produce pharma-grade cannabis oil with a focus on secondary extraction methodology, distillation, cannabinoid isolation, purification and R&D. The facility is located in the South Gippsland region of Wonthaggi, which is 127 kilometers southeast of Melbourne.

MediPharm Labs has completed its application process with the federal Office of Drug Control in February 2018 in order to extract and import medical cannabis products in Australia and expects its approval to be forthcoming shortly. Once approved, MediPharm Labs Australia will be conducting a series of R&D exercises before submitting an application to the Therapeutics Goods Association (TGA), whose approval will mark the commencement of business operations in Australia.

Future Services

MediPharm Labs will be offering the following two services to cannabis companies across the globe.

Contract Processing

Through supply agreements with licensed producers in Canada and Australia, MediPharm Labs will be able to provide cGMP cannabis oil to licensed companies to sell under their own brands.

White Label Solutions

Through this JV Model, MediPharm Labs will supply raw cannabis concentrates, product formulations, processing and packaging of ready-made products to companies that are licensed to sell cannabis oils and advanced derivative products. . MediPharm Labs will partner with experts in their own areas of manufacturing (beverages, confectionary, baked goods, cosmetics, etc.) to make a wide array of cannabis-infused product categories, as legislation permits.

Management

Pat McCutcheon — President & CEO 

Before founding MediPharm Labs, Pat McCutcheon enjoyed a 15 year career in the pharmaceutical industry in top sales roles, successfully launching a wide range of medical products. He most recently worked at Janssen Pharmaceuticals (Johnson & Johnson) where he led the Hospital Division for Renal and Mental Health products. McCutcheon is a frequent speaker at Cannabis Industry events, providing a unique perspective as the country’s first Licensed Producer to obtain approval without first receiving a cannabis cultivation license. His foresight in creating a business that focuses on advanced cannabis concentrates bodes well for medical research, investors and consumers alike. McCutcheon holds an H.B.Sc. (Biology) degree from the University of Western Ontario.

Keith Strachan — VP Business Development

Keith is a Supply Chain Management expert having held various procurement positions in different Ministries/Agencies including correctional services, policing, transportation and healthcare.  He has operated a business development consulting practice, specializing in Public Sector RFP and government contracts, compliance for government licensing and local planning.  Keith has a passion for entrepreneurism with ownership in several companies in the hospitality industry. 

Dr. Chris Talpas, Director of Quality Control and Assurance  

Chris has 24 years of experience in the bio-pharmaceutical field, having been involved in all aspects of development from bench-top to commercial manufacture. After completing his BSc. and Doctorate degrees in Biochemistry, he joined Hemosol as a research scientist and then transitioned into the Process Development group where he worked on scaling up the manufacturing process to support clinical manufacturing of a haemoglobin-based blood substitute. Thereafter, he managed the clinical manufacturing plant. An expert in Chromatography, Dr. Talpas comes to MediPharm Labs with a wealth of expertise in the qualification and validation of complex processes and equipment, as well as the development and maintenance of quality systems, having just served as the Director of Manufacturing Sciences at Therapure Biopharma.  

Warren Everitt — Director of MediPharm Labs Australia

Warren Everitt brings a wealth of senior leadership to MediPharm Labs Australia, having achieved success through building presence in Asia Pacific for a leading international digital marketing agency. Everitt boasts a 15-year history in sales and marketing, consulting to some of the biggest companies in the world.

Paul Hamelin — Director of Security

Paul Hamelin has a 35 year long career in policing and is dedicated to serving fellow citizens and advancing policing as a profession. He has successfully built bridges between community groups and the Ontario government and is currently the Executive Director of the Ontario Police Technology Information Cooperative. Hamelin is the former president of the Ontario Association of Chiefs of Police.

Chris Hobbs — CFO

Over the past 18 years, Chris Hobbs has acted as Chief Financial Officer for several private and public companies operating in the resource, health sciences and technology sectors. Hobbs is a member of the Chartered Accountants of Ontario and holds a Bachelors of Business Administration from the Schulich School of Business at York University.

Ahmed Shehata, General Counsel and Head of Corporate Development  

Ahmed comes to MediPharm Labs after having spent the previous 8 years working in the Business Law Group in the Bay Street office of one of the world’s largest law firms where his practice consisted of securities law, mergers and acquisitions, corporate finance and general corporate and commercial law. Ahmed has acted as external counsel for numerous cannabis companies and has been involved in a legal advisory role in the going public transactions of cannabis companies as well as companies in several other industries. He holds a Juris Doctor Law Degree from Osgoode Hall Law School and a Bachelor of Commerce Honours Degree from the Queen’s University School of Business.  

Sybil Taylor, Chief Marketing Officer

A 25-year marketing veteran, Sybil has brought premium consumer brands to life by developing innovative customer-focused marketing strategies. She launched Steam Whistle Pilsner in 2000 as a pioneering upstart and helped it grow to the largest craft beer brand in Canada. As CMO at Nuuvera Canada, Sybil was a senior contributor to this Canadian Cannabis start-up via strategic planning and brand development for medical and recreational brands.  Sybil has been part of senior teams in two of Canada’s Best Managed Companies, and through CSR initiatives, she has brought numerous awards and public profile to her managed brands.

 

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