One stock that has lagged the recent burst of enthusiasm in the cannabis space is Medipharm Labs Corp (OTCMKTS:MEDIF). That said, the stock moved higher to close out last week and could be lined up to play some catch-up, especially after announcing that its subsidiary, MediPharm Labs Australia Pty. Ltd. has secured its first European white-label cannabis supply agreement with Therismos Limited, a subsidiary of Cannaray Limited.
According to the release, under the three-year agreement, MediPharm Labs Australia will supply a range of cannabis oil products that meet the high-quality standards set by the German Institute for Drugs and Medical Devices that requires all medicinal cannabis products be manufactured under Good Manufacturing Practices.
Medipharm Labs Corp (OTCMKTS:MEDIF) bills itself as a company that primarily focuses on producing pharma-grade cannabis oil and concentrates in Canada. It also focuses on providing cannabis contract processing services to licensed producers and growers; supplying cannabis oil to companies for sale under its brand; and supplying raw materials and processing for the creation of ready-to-sell cannabis products. The company was founded in 2015 and is headquartered in Barrie, Canada.
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 from our cGMP (current Good Manufacturing Practices) and ISO standard clean rooms and critical environments laboratory, allows MediPharm Labs to produce purified, pharmaceutical-grade 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 proprietary cannabis oil concentrate products for resale globally on a private label basis.
Through its subsidiary, MediPharm Labs Australia Pty. Ltd., MediPharm Labs has also completed its application process with the federal Office of Drug Control to extract and import medical cannabis products in Australia.
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As noted above, MEDIF just announced that its subsidiary, MediPharm Labs Australia Pty. Ltd. has secured its first European white-label cannabis supply agreement with Therismos Limited, a subsidiary of Cannaray Limited.
The chart shows 11% piled on for shareholders of the name during the trailing week. In addition, the name has benefitted from a jump in recent trading volume to the tune of 19% over the long run average.
“We are pleased to be working with a supply partner that can meet our strict requirements for laboratory controls, quality, reliability, traceability and scale. MediPharm Labs mirrors the qualities we seek in a medical supply partner,” said Scott Maguire, Chief Executive Officer, Cannaray. “We note in particular that both of MediPharm Labs’ production facilities have achieved GMP certification, thus guaranteeing high-quality pharmaceutical products. Cannaray’s goal is to provide patients with high-quality, naturally derived medical products and become a European leading importer and distributor of such products. The MediPharm Labs relationship is one significant step forward in achieving this goal.”
Earning a current market cap value of $188M, MEDIF has a significant war chest ($42.3M) of cash on the books, which compares with about $53.6M in total current liabilities. One should also note that debt has been growing over recent quarters. MEDIF is pulling in trailing 12-month revenues of $107M. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 37.9%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $MEDIF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MEDIF, either long or short, and we have not been compensated for this article.