MediPharm Labs Corp. (OTCMKTS:MEDIF), which specializes in precision-based cannabinoids, has announced on October 7, 2022, about completing the sale of MediPharm Labs Australia Pty, its fully owned subsidiary.
Trading Data
On Friday, MEDIF stock slumped 14.63% to $0.0560 with more than 41.19K shares, compared to volume of 93.63K shares. The stock moved within a range of $0.0559 – 0.0703 after opening trade at $0.0703.
MediPharm Labs Completes Sale of Australian Facility for Proceeds of $7,250,000 AUD
David Pidduck, CEO of MediPharm Labs, said that the MediPharm Labs Australia assets boost the parent company’s position, while minimizing their cash burn. The additional non-dilutive capital allows them to continue the initiative to right-size the company and become profitable through both organic and inorganic growth.
The sale is valued at $7.25M AUD ($6.3M CAD), and was completed with OneLife Botanicals PTY, effective from October 6, 2022. As previously announced on July 11, 2022, the sale includes assets of MediPharm Labs Australia, specialized licensing, operational knowledge, and Australian and New Zealand customers presently served from that facility.
All international contracts outside of Australia and New Zealand are to stay with MediPharm Labs Corp. and be serviced from the MediPharm Labs Barrie GMP facility. After a long sale process, an agreement was reached with OneLife Botanicals that is a good strategic fit for both parties.
OneLife Botanicals is an emerging leader in the Australia region for cannabis-based wellness and medical products. It even intends to launch OTC CBD products across Australia. Purchasing the MediPharm Labs Australia facility, has expedited OneLife Botanicals’ timing to commercialization.
Key Quote
David Pidduck, CEO of MediPharm Labs: “The sale of the MediPharm Labs Australia assets improves the Company’s cash position while also reducing our cash burn. This additional non-dilutive capital allows us to continue our initiative to right-size our company and become profitable through organic and inorganic growth.
Technical Data
MEDIF stock is trading below the 20-Day and 50-Day Moving averages of $0.0566 and $0.0597 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0942.
