Licenced Producer Retains Right to First Purchase of Oil or Distillate Created from Supplied Cannabis
TORONTO, Sept. 24, 2018 /CNW/ - Newstrike Brands Ltd. (TSX-V:HIP) ("Newstrike"), is pleased to announce its wholly-owned subsidiary Up Cannabis Inc. ("Up Cannabis"), has entered into a supply agreement with MediPharm Labs Inc. ("MediPharm Labs"), pursuant to which Up Cannabis will supply MediPharm Labs with a total of up to 1,200 kg of excess cannabis product in the form of flower and shake that will be used for the purposes of extraction and the creation of cannabis oil and/or distillate.
"We are very pleased to partner with MediPharm Labs, a leader in cannabis extraction technologies, for this arrangement," said Jay Wilgar, CEO of Newstrike and Up Cannabis. "This allows us to optimize revenue from our harvests and our agreement gives Up Cannabis the right of first refusal in the purchase of the extracted oil or distillate, supporting our new product strategy as the adult-use market for these products becomes legalized."
"MediPharm Labs has been building reserves of biological assets in advance of legalization. Adding Up Cannabis as a supply partner known for premium cannabis, strengthens our ability to produce a steady supply of premium, pure, cannabis concentrates for this new consumer market," says Pat McCutcheon, CEO of MediPharm Labs. "We're ready to formulate purified cannabis oil with our new valued partner."