Financing to Assistance Accelerated Development
TORONTO, Might 15, 2019 (GLOBE NEWSWIRE) — MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (FSE:MLZ) (“MediPharm Labs”) a leader in specialized, investigation-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 nicely as for common corporate and operating capital purposes.
The Credit Facility consists of a $15 million operating loan with a 1-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 further essential milestone that will present access to non-dilutive capital to assistance our plans for accelerated development as we continue to ramp up operations ahead of anticipated legalization of broader concentrate-primarily based items this fall.
Patrick McCutcheon, CEO, MediPharm Labs
We are pleased to have a major monetary institution assistance 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 items.
The committed term sheet dated Might 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 nicely 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 form. There is no assurance that the Credit Documents will be completed or that any quantity will be drawn below the Credit Facility. Amounts drawn below 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 initially organization in Canada to grow to be a licensed producer for cannabis oil production below the ACMPR devoid of initially getting a cannabis cultivation license. This specialist concentrate on cannabis concentrates from getting constructed to cGMP (present Fantastic Manufacturing Practices) and ISO regular-constructed clean rooms and essential environments laboratory, makes it possible for MediPharm Labs to make purified, pharmaceutical-like cannabis oil and concentrates for sophisticated derivative items. MediPharm Labs has invested in an specialist, investigation-driven group, state-of-the-art technologies, downstream extraction methodologies and goal-constructed facilities to provide pure, protected and precisely-dosed cannabis items to sufferers and customers. MediPharm Labs’ private label plan is a higher margin company for the organization, whereby it opportunistically procures dry cannabis flower and trim from its several solution provide partners, to make cannabis oil concentrate items for resale globally on a private label basis.
Via its subsidiary, MediPharm Labs Australia Pty. Ltd., MediPharm Labs has also completed its application method with the federal Workplace of Drug Manage to extract and import healthcare cannabis items in Australia.
Original press release