MediPharm Labs Signs Committed Term Sheet for $20 Million Debt Facility With Schedule 1 Bank

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Financing to Support Accelerated Growth

TORONTO, May 15, 2019 (GLOBE NEWSWIRE) — MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (FSE:MLZ) (“MediPharm Labs”) a leader in specialized, research-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 provide MediPharm Labs access to non-dilutive capital to fund planned growth, as well as for general corporate and working capital purposes.

The Credit Facility consists of a $15 million operating loan with a one-year term and a $5 million non-revolving equipment term loan with a three-year term. The Credit Facility, once closed, will bear interest at the Schedule 1 Bank’s prime lending rate plus 1.85% per annum.

This commitment marks yet another important milestone that will provide access to non-dilutive capital to support our plans for accelerated growth as we continue to ramp up operations ahead of expected legalization of broader concentrate-based products this fall.

Patrick McCutcheon, CEO, MediPharm Labs

We are pleased to have a leading financial institution support MediPharm Labs as we continue to innovate and expand our private and white label offerings to serve a growing demand for high-quality, adult-use and medical cannabis products.

The committed term sheet dated May 14, 2019 is non-binding and MediPharm’s ability to draw down on the Credit Facility is subject to the negotiation and execution of a definitive credit agreement, guarantees, and security documents (collectively, the “Credit Documents”) as well as the satisfaction of other customary closing and drawdown conditions. The Credit Facility will also be subject to certain customary financial and other covenants for a financing of this type. There is no assurance that the Credit Documents will be completed or that any amount will be drawn under the Credit Facility. Amounts drawn under the Credit Facility will be guaranteed by MediPharm Labs and MediPharm Labs Australia Pty. Ltd.

About MediPharm Labs Corp.

Founded in 2015, MediPharm Labs has the distinction of being the first company in Canada to become a licensed producer for cannabis oil production under the ACMPR without first receiving a cannabis cultivation license. This expert focus on cannabis concentrates from being built to cGMP (current Good Manufacturing Practices) and ISO standard-built clean rooms and critical environments laboratory, allows MediPharm Labs to produce purified, pharmaceutical-like cannabis oil and concentrates for advanced derivative products. MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream extraction methodologies and purpose-built facilities to deliver pure, safe and precisely-dosed cannabis products to patients and consumers. MediPharm Labs’ private label program is a high margin business for the company, whereby it opportunistically procures dry cannabis flower and trim from its numerous product supply partners, to produce cannabis oil concentrate products for resale globally on a private label basis.

Through its subsidiary, MediPharm Labs Australia Pty. Ltd., MediPharm Labs has also completed its application process with the federal Office of Drug Control to extract and import medical cannabis products in Australia.

Original press release

Published by NCV Newswire
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