MediPharm Labs Provides Update on Previously Announced Sale of Napanee Facility to Kensana Health

TORONTO, Jan. 16, 2025 /PRNewswire/ - MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) ("MediPharm", "MediPharm Labs" or the "Company") is pleased to provide an update with respect to the previously announced sale of its facility in Napanee, Ontario (the "Napanee Facility") to be completed pursuant to the terms of a share purchase agreement (the "Purchase Agreement") entered into with Kensana Health Inc. ("Kensana Health") through a disposition of all of the Company's indirect equity interests in its wholly-owned subsidiary ABcann Medicinals Inc. ("ABcann") to Kensana Health for $5.5 million in cash (the "Transaction").

MediPharm Labs and Kensana Health continue to advance towards closing of the Transaction and have agreed to extend the outside date for closing as provided in the Purchase Agreement to January 31, 2025. Completion of the Transaction remains subject to customary closing conditions and receipt of all necessary approvals, as applicable. Operations continue at the Napanee Facility without disruption. For further details regarding the Transaction, please see the Company's press release dated December 17, 2024.

About Kensana Health

Kensana Health is a Canadian private company with global operations. Kensana Health is a unique hybrid biotechnology company with an experienced team within the pharmaceutical industry, including world renowned experts in plant-based medicines, as well as chronic wounds. Following the principles of Environmental, Social, and Governance (ESG), Kensana Health was built on a vertically integrated model, allowing for the control of all aspects of the supply chain. Kensana Health is able to simultaneously generate revenue with their proprietary and patent-protected phytopharmaceutical formulations while Kensana Health moves forward towards achieving multiple full drug registrations globally. Kensana Health carries out its operations in compliance with all applicable laws in the countries in which it operates.

About MediPharm Labs

Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a GMP-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 for delivery of pure, trusted and precision-dosed cannabis products for its customers. MediPharm Labs develops, formulates, processes, packages and distributes cannabis and advanced cannabinoid-based products to domestic and international medical markets.

In 2021, MediPharm Labs received a Pharmaceutical Drug Establishment License from Health Canada, becoming the only company in North America to hold a commercial-scale domestic Good Manufacturing Practices License for the extraction of multiple natural cannabinoids. This GMP license was the first step in the Company's current foreign drug manufacturing site registration with the US FDA.

In 2023, MediPharm acquired VIVO Cannabis Inc., which expanded MediPharm's reach to medical patients in Canada via Canna Farms medical ecommerce platform, and in Australia and Germany through Beacon Medical Australia PTY Ltd. and Beacon Medical Germany GMBH. This acquisition also included Harvest Medical Clinics in Canada which provides medical cannabis patients with Physician consultations for medical cannabis education and prescriptions.

The Company carries out its operations in compliance with all applicable laws in the countries in which it operates.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things: the Transaction; the Company and Kensana Health's ability to close the Transaction prior to the outside date as provided in the Purchase Agreement; ABcann's ability to continue operations without disruption at the Napanee Facility; and the long term outlook of the business and future success of the Company. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm Labs or Kensana Health to obtain adequate financing; the delay or failure in receiving regulatory approvals; and other factors discussed in MediPharm Labs' continuous disclosure filings, available on the SEDAR+ website at www.sedarplus.ca. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm Labs assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

Website: www.medipharmlabs.com

SOURCE MediPharm Labs Corp.