TORONTO, Aug. 06, 2020 (GLOBE NEWSWIRE) — MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE:MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven pharmaceutical-quality cannabis extraction, distillation and derivative products, is pleased to announce that it has received from escrow the remaining half, net of certain fees, of the $37,822,500 in gross proceeds from the Company’s June 8, 2020 private placement (the “Offering”). All dollar amounts in this news release are in Canadian dollars.
“We are pleased to have received the remaining portion of this strategic capital positioning us with increased financial strength and flexibility to deliver on longer-term opportunities with larger pharmaceutical and CPG companies and accelerate our entrance in international markets,” said Pat McCutcheon, Chief Executive Officer, MediPharm Labs. “We are building on our global customer partnerships and market share, providing international distribution expertise and delivering innovative products and brands. We remain excited to expand our participation across a range of clinical trials that offer potential upside towards future development of cannabis-based prescription RX products and products that can be registered in various global jurisdictions. We look forward to creating value for all shareholders as we build out our capabilities to drive future sustainable growth.”
On June 8, 2020, the Company received the initial $18,911,250 in proceeds of the Offering, net of certain fees, in connection with the placement of a $20,500,000 unsecured convertible note (the “First Note”) and a warrant (the “First Warrant”) to purchase up to 3,601,427 common shares of the Company (the “Common Shares”). The remaining $18,911,250 in proceeds of the Offering were placed in escrow in connection with the placement of a subscription receipt (the “Subscription Receipt”) entitling the holder to receive, upon satisfaction of certain escrow release conditions including shareholder approval (“Shareholder Approval”), a further $20,500,000 unsecured convertible note (the “Second Note” and, together with the First Note, collectively, the “Notes”) and a further warrant (the “Second Warrant” and, together with the First Warrant, collectively, the “Warrants”) to purchase up to 3,601,427 Common Shares.
After receipt of Shareholder Approval at the Company’s annual and special shareholders’ meeting held on August 5, 2020, (i) the Company received from escrow the remaining proceeds of the Offering, net of certain fees, and (ii) the Subscription Receipt was converted into the Second Note and the Second Warrant. The Second Note and the Second Warrant have identical terms to the First Note and First Warrant described in the Company’s June 8, 2020 press release.
The Offering remains subject to final approval of the TSX. The Notes and the Warrants and any underlying securities issued pursuant to the Offering are subject to a statutory four month and one day hold period, ending on October 9, 2020.
The terms of the Notes and Warrants described herein are qualified in their entirety by the Company’s documents filed on SEDAR at www.sedar.com.
About MediPharm Labs Corp.
Founded in 2015, MediPharm Labs specializes in the production of purified, pharmaceutical quality cannabis oil and concentrates and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard built clean rooms. MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities with five primary extraction lines for delivery of pure, trusted and precision -dosed cannabis products for its customers. Through its wholesale and white label platforms, they formulate, consumer-test, process, package and distribute cannabis extracts and advanced cannabinoid-based products to domestic and international markets. As a global leader, MediPharm Labs has completed commercial exports to Australia and is nearing commercialization of its Australian Extraction facility. MediPharm Labs Australia was established in 2017.
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 receipt of TSX approval. 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 Lab’ 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.