MMJ Group Holdings Limited (ASX:MMJ), which owns 5.2 million shares and 2.9 million warrants (exercisable at CAD $1.20 per share by October 2020) in MediPharm Labs came up with the media release announcement on November 13, 2018. Pursuant to the Cannabis Act, MediPharm Labs has received the sales license from Health Canada.
Co-Founder and CEO of MediPharm Labs, Pat Mc Cutcheon while addressing the media quoted “Securing the sales license from Health Canada represents the significant milestone towards the growth story of the Company. The long-term strategy of the company to be the globally recognized producer of the Cannabis concentrates at the standard quality that remains intact with its strong focus on profitability, revenues with value returns to shareholders, partners and constituents.
Working towards its long-term strategy and establishing itself as the globally recognized producer, the Company has made huge investments in its team and other resources. Medipharm Labs holds a very strong set of experts, customized state of art technology, built in facilities as well as proprietary methodologies to market pharmaceutical grade and significant dosable cannabis oils, etc.
Cannabis concentrates in purified form have emerged as the strong and preferred basis for consumption. The company is thus in the process of building an inventory of specialized Cannabis products, concentrates and associated isolates. The grant of sales license will help the company in marketing its products both to medicinal and adult usage markets in Canada.
The company in view of its on-time delivery of the well-planned strategies to its already announced well known and innovative industry partners will definitely mark its place in the Canadian Cannabis supply chain market.
As on November 13, 2018, the Company has only 32 supply agreements with Ontario Cannabis store.
Meanwhile, in October, it has signed three-year agreement with Emerald Therapeutics Inc.; and in September 2018, it has signed three-year agreement with INDIVA Limited. One-year agreement with Bonify as announced on August 2, 1018 and a three-year agreement with James. E. Wagner Cultivation Corp as announced on July 31, 2018 are other contracts in the kitty. The company has a supply agreement of 1200 kg with UP Cannabis Inc as on September 24, 2018. MediPharm Labs under its joint venture agreement with “Garden Variety” expects to supply four future retail stores at Manitoba. These retail stores have received provincial approval for bricks and mortar store on August 22, 2018.
Along with its sales license securement, the company is in the process of getting the license to extract and import the medicinal cannabis products in Australia. The company has recently completed the application procedure and has submitted the application to the Federal office of drug control.
With the issue of sales license and other licenses to be secured in near term, the company which is well placed under the category of first mover in cannabis extraction and purification in Canada is all set for achieving new heights in future. The scrip last traded at the levels of $0.33.
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