Supplying Canada with Pharma-Grade Cannabis
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MediPharm Labs Corp. (TSXV:LABS) 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 supplies 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 has the capacity to process 100,000 kilograms of dry cannabis per year. Their funded expansion plans (Phase 2) within their wholly-owned building will increase the company’s estimated processing capacity to over 250,000 kilograms per year by Q2 2019. 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, which is anticipated during Q4 2018.
MediPharm Labs Corp. 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.
- Primarily focused on producing pharma-grade cannabis oil and concentrates.
- Wholly-owned 70,000 sq ft facility has been constructed to cGMP standards with ISO rated clean rooms and is operational.
- Pharma-grade critical environments, methodologies and discipline result in repeatability in manufacturing and thus, precision dosing.
- Current processing capacity of 100,000 kilograms of dry cannabis flower or trim per year; one of the largest extraction capacities in Canada.
- Fully funded expansion underway expected to increase customized processing capacity to 250,000 kilograms of dry cannabis per year by Q2 2019.
- $7 million investment completed in build-out of critical environment labs and acquisition of state-of-the-art cannabis extraction, fractionation, and distillation equipment. Further customization of equipment for proprietary advantage.
- An agnostic partner to any Licensed Producers, with secured supply stream of dry cannabis to process. Long-term Cannabis Concentrate Program Agreements are in place with Licensed Producers James E. Wagner Cultivation Corporation, 6779264 Manitoba Ltd. (O/A Bonify), INDIVA Limited, Emerald Therapeutics Inc., and UP Cannabis/Newstrike Brands Ltd., while in negotiation with several other Licensed Producers.
- Completed numerous bulk wholesale purchases from various Licensed Producers to bolster inventory in preparation for federal legalization of the adult-use market.
- Named as one of only 32 Licensed Producer suppliers for the Ontario Cannabis Stores.
- Positioned to generate revenue immediately upon receipt of sales licence (sales inspection has been completed and pending approval).
- MediPharm Labs has rights and plans to open four retail stores in the province of Manitoba in 2019 through its Joint Venture Partnership “Garden Variety” with Avana Canada Inc. of Ontario, Fisher River Cree Nation of Manitoba, Chippewas of the Thames of Ontario.
- Research-driven, bio-pharmaceutical team led by Dr. Chris Talpas, Director of Quality Control and Assurance, renowned chromatography expert.
- MediPharm Labs Australia PTY facility, which will be a purpose-built, state-of-the-art extraction facility designed to produce the same superior pharmaceutical grade cannabis oil as the Company’s purpose-built Health Canada licensed cannabis oil production facility in Barrie, Ontario is under development and is anticipated to be operational in spring 2019 pending licensing. MediPharm Labs’ Australian facility in Wonthaggi is expected to serve both the Australian domestic market as well as facilitate international supply chain and logistics opportunities, subject to receipt of applicable licences.
- Development of additional specialized intellectual property, focused on downstream proprietary fractionation, isolation and chromatography underway.
- Advanced activities underway targeting strategic partnerships, development of proprietary products and international opportunities.
- Last private financing targeted at $15 million. Oversubscribed to $22.225 million.
- MMJ PhytoTech Limited and PowerOne Capital Markets Limited are strategic shareholders.
- Management owns shares and has increased share holdings and investment in the company over time.
The MediPharm Labs Purity Standard
A frontrunner in cannabis extraction and purification, MediPharm Labs has invested in an expert team, state-of-the-art technology, advanced proprietary methodologies and purpose-built facilities to deliver pure, safe and precisely dosable cannabis concentrates for advanced derivative 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 Q2 2019.
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.
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.
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.
MediPharm Labs will be offering the following two services to cannabis companies across the globe.
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.
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.
Jason Nalewany — VP Finance
Jason Nalewany brings over 12 years of experience to the MediPharm Labs leadership team, providing financial expertise to various public entities in capital market strategies, M&A advisory, valuation, financial forecasting and financial due diligence. Most recently, Mr. Nalewany held senior finance positions at Aurora Cannabis Inc., a NYSE and TSX listed cannabis company, and played a key role in Aurora’s $3.2 billion merger with MedReleaf Corp. Prior to his time at Aurora, Mr. Nalewany held positions in the strategy and corporate development group at Methanex Corporation, a NASDAQ and TSX listed chemical company. Mr. Nalewany has also held roles at FTI Consulting Inc., and MNP LLP, in transaction advisory capacities. Earlier in his career, he held positions in the audit and assurance practice at PricewaterhouseCoopers LLP, Canada. Mr. Nalewany is a Canadian Chartered Professional Accountant (CPA, CA) and holds a Bachelor of Commerce degree from the University of Victoria.
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.
Dr. Ina Shira Dubinsky — Lead Scientist – Secondary Processing
Dr. Dubinsky recently held the position of Research and Development Scientist at ARA – Avanti Rx Analytics Inc. where she conducted analytical lab-testing and method development of tests for cannabis oil, extract, plant and intermediate products within Health Canada, Food and Drug Administration and Good Manufacturing Practices. Her experience includes research, development and performance of different extraction processes for cannabis and hemp, as well as isolation and purification of cannabinoids by vacuum distillation, vacuum filtration and Normal and RF column chromatography. Dr. Dubinsky is a Postdoctoral Fellow in Biochemistry from the University of Toronto where she designed and synthesized novel organic compounds for protein chemistry, protocols for constructing biopharmaceutical proteins and patented two inventors for red cell substitutes. Dr. Dubinsky earned her PhD in Inorganic Chemistry from Tel Aviv University where she designed, synthesised and purified unique organic compounds.
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.
David Mayers — COO
David Mayers brings over 28 years of pharmaceutical leadership in large multinational firms and small privately held organizations, with extensive experience in corporate strategy and oversight, research and development (“R&D”), quality, lean sigma, production, supply chain, procurement, information technology, finance, product development, product launch, facility expansion, security and the management of controlled substances. Starting his career as a chemist for SmithKline Beecham (now GlaxoSmithKline), David progressed through roles of increasing responsibility for Taro Pharmaceutical Industries Ltd., Merck KGaA, Apotex Inc. and later Purdue Pharma (Canada). Most recently, David served as the Chief Operating Officer and member of the Board of Directors for Impopharma Inc., a pharmaceutical company specializing in the development and launch of pulmonary and nasal inhalation pharmaceutical products. In his role at Impopharma Inc., David led a turn-around of the company’s R&D programs and facilitated its acquisition. David received his Hons. B.Sc. in Biological Science from the University of Guelph and an MBA from the Rotman School of Business, University of Toronto.
Anuja Siwakoti — Director of Global Regulatory & Scientific Affairs
Anuja Siwakoti has 8 years of experience in cannabis research, academia and work in the regulated cannabis industry in Canada. Most recently, Anuja worked as a Senior Quality/Regulatory Consultant at Cannabis Compliance Inc., global cannabis consulting firm. In that role, she provided quality and regulatory consulting services to over 50 clients, assisting with operational gap assessment and GPP/GMP audits, guiding close to one dozen clients with licence receipt from Health Canada, and navigating through the cannabis regulatory jurisdiction of multiple countries/US states. Anuja previously worked for two and a half years at Aphria Inc., one of Canada’s leading LPs, in a senior role in the Quality Department. She has spoken at numerous scientific conferences and been published in peer-reviewed scientific journals. Anuja holds a Masters degree in Medical Sciences Program from McMaster 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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