- MediPharm Labs (TSX:LABS) has received a $7.27 million cash settlement to resolve a commercial agreement dispute
- MediPharm and Tilray Brands Inc. (TSX:TLRY) came to a mutual resolution and established a long-term supply relationship
- The company has now received its cash settlement consisting of a $3 million cash payment and 1,573,152 total Tilray common shares that have been sold for gross proceeds of $4.27 million
- MediPharm Labs stock last traded at $0.075 per share and Tilray stock last traded at C$2.65 per share
MediPharm Labs (TSX:LABS) has received a $7.27 million cash settlement to resolve a commercial agreement dispute.
On Oct. 2, MediPharm and Tilray Brands Inc. (TSX:TLRY) came to a mutual resolution and established a long-term supply relationship. After the settlement agreement, MediPharm’s team announced on Wednesday that the company has now received its cash settlement consisting of:
- $3 million cash payment
- 1,573,152 total Tilray common shares that have been sold for gross proceeds of $4.27 million
Non-cash elements also included in the settlement agreement are ongoing product considerations:
- $1 million in Tilray products (including but not restricted to high-quality flower and extractable biomass)
- $500,000 four-year supply agreement to provide Tilray with MediPharm products and services
MediPharm has already started working with Tilray management to add MediPharm Labs products to Tilray’s Medical platform, and to qualify the most appropriate products to be sourced from Tilray.
Thanks to this long-term supply agreement, MediPharm is in a better position to establish a positive ongoing business relationship with a major player in the global cannabis industry. This supply agreement allows Tilray to access MediPharm’s pharmaceutical products and services domestically and internationally, including products produced under the company’s U.S. FDA foreign drug site registration and Canadian drug establishment license.
MediPharm’s leadership team said in a news release it believes this gives the company a strong position to continue to invest in the pharmaceutical and clinical pipelines and to thoughtfully consider approaches to the many available consolidation opportunities in the industry.
MediPharm Labs Corp. develops and manufactures purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients, and advanced derivative products in a Goods Manufacturing Practices-certified facility. MediPharm is the only company in North America to hold a commercial-scale domestic GMP licence for the extraction of multiple natural cannabinoids.
MediPharm Labs stock last traded at $0.075 per share and is up 7.1 per cent year-to-date.
Tilray stock last traded at C$2.65 per share and though it is 27.7 per cent lower year-to-date, it has risen 20.4 per cent over the past three months.
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