BARRIE – MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ), described as a global leader in specialized, research-driven cannabis extraction, distillation and derivative products, achieved Company record finished goods shipments of 550,000 units in the fourth quarter of 2020. These results and the update that follows reflect corporate progress of the Company’s Canadian domestic business only. The Company will provide a separate update on the progress of its Australian and international businesses.
“Shipment volume is a key measure that illustrates growing market demand and our ability to meet that demand through our GMP-certified facilities,” said Keith Strachan, President and Interim CEO, MediPharm Labs. “This new milestone is something to celebrate but also to surpass as we focus all efforts on accelerating growth and improving profitability in 2021 consistent with the action plan introduced in November.”
Of the units shipped, 100,000 were owned private label MediPharm Labs Stock Keeping Units compared to 25,000 SKUs respectively in the third quarter.
“Demand signals for our proprietary formulations are strong with several already becoming top sellers in many provinces,” said Strachan. “In fact, Ontario Cannabis Store sales data show that MediPharm Labs’ CBD 50 Plus Formula oil ranks as the third best-selling CBD oil in the province and number five best-selling in the overall oil category. Our reputation for quality and purity is resonating with consumers, provincial distributors and our B2B customers.”
Included in Q4 shipments were 25 different vape SKUs, reflecting the ongoing ramp up of production and contract manufacturing for many top cannabis brands that count on MediPharm Labs for value-added service and consistent GMP-quality output.
During Q4 2020, MediPharm Labs entered a supply agreement with Nova Scotia Liquor Corporation and shipped initial orders to the province. Nova Scotia recently opened additional cannabis stores as part of its growth plan. The Company now has retail distribution agreements with six provinces: B.C., Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia.
“We made additional investments in our sales team and we began to reap the benefits in the fourth quarter,” said Mr. Strachan. “We added sales resources with the goal of expanding our B2B partnerships, growing market share within our existing provincial distribution footprint and targeting new provincial and retail distribution opportunities. These activities form part of our improvement strategy for 2021.”
Founded in 2015, MediPharm Labs specializes in the production of purified, pharmaceutical-quality cannabis oil and concentrates and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets. As a global leader, MediPharm Labs has completed commercial exports to Australia and has fully commercialized its wholly-owned Australian extraction facility. MediPharm Labs Australia was established in 2017.
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