Financing to Help Accelerated Development
TORONTO, May possibly 15, 2019 (GLOBE NEWSWIRE) — MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (FSE:MLZ) (“MediPharm Labs”) a leader in specialized, study-driven cannabis extraction and cannabinoid isolation, is pleased to announce that its wholly-owned subsidiary, MediPharm Labs Inc. (“MediPharm”), has signed a committed term sheet for a $20 million senior secured revolving credit facility (“Credit Facility”) from a Canadian Schedule 1 Bank. The Credit Facility is intended to present MediPharm Labs access to non-dilutive capital to fund planned development, as properly as for basic corporate and functioning capital purposes.
The Credit Facility consists of a $15 million operating loan with a one particular-year term and a $five million non-revolving gear term loan with a 3-year term. The Credit Facility, as soon as closed, will bear interest at the Schedule 1 Bank’s prime lending price plus 1.85% per annum.
This commitment marks but a different essential milestone that will present access to non-dilutive capital to help our plans for accelerated development as we continue to ramp up operations ahead of anticipated legalization of broader concentrate-primarily based goods this fall.
Patrick McCutcheon, CEO, MediPharm Labs
We are pleased to have a top monetary institution help MediPharm Labs as we continue to innovate and expand our private and white label offerings to serve a increasing demand for higher-excellent, adult-use and healthcare cannabis goods.
The committed term sheet dated May possibly 14, 2019 is non-binding and MediPharm’s capacity to draw down on the Credit Facility is topic to the negotiation and execution of a definitive credit agreement, guarantees, and safety documents (collectively, the “Credit Documents”) as properly as the satisfaction of other customary closing and drawdown circumstances. The Credit Facility will also be topic to particular customary monetary and other covenants for a financing of this kind. There is no assurance that the Credit Documents will be completed or that any quantity will be drawn beneath the Credit Facility. Amounts drawn beneath the Credit Facility will be assured by MediPharm Labs and MediPharm Labs Australia Pty. Ltd.
About MediPharm Labs Corp.
Founded in 2015, MediPharm Labs has the distinction of getting the 1st organization in Canada to turn out to be a licensed producer for cannabis oil production beneath the ACMPR with out 1st getting a cannabis cultivation license. This professional concentrate on cannabis concentrates from getting constructed to cGMP (present Very good Manufacturing Practices) and ISO normal-constructed clean rooms and crucial environments laboratory, permits MediPharm Labs to make purified, pharmaceutical-like cannabis oil and concentrates for sophisticated derivative goods. MediPharm Labs has invested in an professional, study-driven group, state-of-the-art technologies, downstream extraction methodologies and goal-constructed facilities to provide pure, secure and precisely-dosed cannabis goods to sufferers and customers. MediPharm Labs’ private label system is a higher margin organization for the organization, whereby it opportunistically procures dry cannabis flower and trim from its quite a few solution provide partners, to make cannabis oil concentrate goods for resale globally on a private label basis.
By way of its subsidiary, MediPharm Labs Australia Pty. Ltd., MediPharm Labs has also completed its application method with the federal Workplace of Drug Handle to extract and import healthcare cannabis goods in Australia.
Original press release