MediPharm Labs Completes Sale of Australian Facility for Proceeds of $7,250,000 AUD

BARRIE, ON, Oct. 7, 2022 /PRNewswire/ - MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) ("MediPharm Labs" or the "Company") a pharmaceutical company specialized in precision-based cannabinoids, completed the sale of MediPharm Labs Australia Pty ("MediPharm Labs Australia"), a fully owned subsidiary of the Company, for a value of $7.25M AUD ($6.3M CAD) (the "Sale"). The sale was completed with OneLife Botanicals PTY ("OneLife Botanicals") effective October 6, 2022.

The Sale, as previously announced on July 11, 2022, includes the assets of MediPharm Labs Australia, specialized licensing, operational knowledge, and Australian and New Zealand customers currently served from that facility. All international contracts outside of Australia and New Zealand will remain with MediPharm Labs Corp. and be serviced from the MediPharm Labs Barrie GMP facility.

After an extensive sale process, the Agreement with OneLife Botanicals was identified as a strategic fit for both parties. OneLife Botanicals is an emerging leader in the Australia region for cannabis-based wellness and medical products, with plans to launch OTC CBD products across Australia. Purchasing the MediPharm Labs Australia facility expediates OneLife Botanicals' timing to commercialization.

Management Commentary:

David Pidduck, CEO of MediPharm Labs

"The sale of the MediPharm Labs Australia assets improves the Company's cash position while also reducing our cash burn. This additional non-dilutive capital allows us to continue our initiative to right-size our company and become profitable through organic and inorganic growth.

I want to personally thank our Australian team for their dedication and professionalism through the closing of this sale. I wish them and OneLife Botanicals much success in their future business pursuits."

About MediPharm Labs

Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) 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 for delivery of pure, trusted and precision-dosed cannabis products for its customers. MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets. In 2021, MediPharm Labs received a Pharmaceutical Drug Establishment Licence from Health Canada, becoming the only company in North America to hold a domestic Good Manufacturing Licence for the extraction of natural cannabinoids. The Company carries out its operations in compliance with all applicable laws in the countries in which it operates.

About OneLife Botanicals

OneLife Botanicals is a niche producer of medicinal cannabis in Melbourne, Australia. The company has a passion for developing and producing products that provide a range of health benefits and assist in treating a range of specific health conditions.

The company operates an existing cultivation site with extensive Infrastructure, including fit for purpose glasshouses for growing Medicinal Cannabis in a controlled environment. The glasshouses facilitate the optimum growing environment through temperature and climate control, allowing natural sunlight to be maximized in a protected and secure environment.

The Directors and stakeholders are focused on identifying and exploring market opportunities, along with embracing innovation in the production processes. The success of the business is able to be achieved with an extensive Research and Development program, aimed at staying ahead of changes in growing methods, technological solutions, and product applications, along with advanced automation ensuring that we minimize operating expenditure and maximise quality control.

The organisation is committed to make the health benefits of this natural and powerful plant available to everyone seeking to improve their One Life.

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. Forward-looking statements are necessarily based upon several 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; MediPharm Labs' future growth prospects; and other factors discussed in MediPharm Labs' 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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/medipharm-labs-completes-sale-of-australian-facility-for-proceeds-of-7-250-000-aud-301643374.html

SOURCE MediPharm Labs Corp.