MediPharm Labs Announces $ 20 Million Share Purchase Funding


TORONTO, March 01, 2021 (GLOBE NEWSWIRE) – MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a world leader in specialized research focused on the extraction, distillation and cannabis-derived products of pharmaceutical grade, is pleased to announce that it has entered into an agreement with Cantor Fitzgerald Canada Corp., as the principal underwriter and sole bookrunner on behalf of a syndicate of underwriters (collectively the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 34,500,000 Units of the Company (the “Units”) at a price of $ 0.58 per Unit for gross proceeds of $ 20,010,000 ( the placement “).

Each unit will consist of one common share of the capital of the Company (a “share”) and a share subscription warrant (a “subscription warrant”). Each warrant may be exercised to acquire one share at an exercise price of $ 0.70 per share (the “exercise price”) for a period of 24 months from the closing date of the offering.

The Company has granted the Underwriters an option (the “Over-Allotment Option”) to purchase up to 5,175,000 additional Units on the same terms and conditions, exercisable at any time, in whole or in part, for a period of 30-day period following the closing of the Offer for the purposes of over-allocation and market stabilization.

The units will be offered in all provinces of Canada, except Quebec, in accordance with the Company’s short form base shelf prospectus dated February 24, 2021 (the “base shelf prospectus”) and a prospectus supplement which will be registered by MediPharm Labs, United States. States under exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “United States Securities Act”) and applicable state securities laws, and any other jurisdiction as may be agreed by MediPharm Labs and the Underwriters on a private placement basis. The Underwriters are to receive a cash commission equal to 6% of the gross proceeds of the offering (3.0% on President’s List Investors).

The Company expects to use the net proceeds of the Offering to finance the growth of the Company’s Cannabis 2.0 product portfolio, expand the portfolio of medical products and active pharmaceutical ingredients for export, pharmaceutical registrations, research. and development related to clinical trial formulations, sales and marketing in new markets and for general corporate purposes, including working capital funding.

The offering is expected to close on or around March 5, 2021 and is subject to receipt of all necessary regulatory approvals, including, but not limited to, the approval of the Toronto Stock Exchange and the satisfaction of other conditions of usual closing.

The base shelf prospectus gives the Company the flexibility to take advantage of financing opportunities and favorable market conditions, and to offer, issue and sell, during the 25-month period during which it remains in effect (the “Effective period”); senior and subordinated unsecured debt securities, including debt securities convertible or exchangeable for other securities of MediPharm Labs; subscription receipts; mandates; and / or units composed of one or more of these securities mentioned above (collectively, the “Securities”) for a total offer price of $ 100,000,000, in one or more transactions during the Period. ‘effect. The Company may also use the base shelf prospectus as part of a “market distribution” in accordance with applicable securities laws, which would allow the sale of securities in the name of the Company through the Exchange. Toronto (or other markets) as further described in the applicable prospectus supplement. To date, no agreement has been reached regarding any “market distribution”.

If any securities, in addition to the securities forming part of the offering, are offered under the base shelf prospectus, the terms of such securities and the intended use of the net proceeds resulting from such offering would be determined at the time of any offering and would be described in a separate prospectus supplement filed with the relevant Canadian securities regulatory authorities at the time of such offering, which would be made available by MediPharm Labs on SEDAR at

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States. The units, stocks, warrants and shares that may be issued upon exercise of the warrants have not been and will not be registered under the US Securities Act or any applicable securities law. ” a state and may not be offered or sold in the United States or to, or on behalf of or for the benefit of “US persons” (as defined in the US Securities Act) absent registration or applicable exemption from these registration requirements.

About MediPharm Labs Corp.

Founded in 2015, MediPharm Labs specializes in the production of purified and pharmaceutical grade cannabis oil and concentrates and advanced derivative products using a Good Manufacturing Practices certified facility with clean rooms to ISO standards. MediPharm Labs has invested in a team of research-driven experts, cutting-edge technology, downstream purification methodologies and specially designed facilities with five main extraction lines for the delivery of pure, reliable and dosed cannabis products. with precision for its customers. . Through its wholesale and white label platforms, they formulate, consumer test, process, package and distribute cannabis extracts and advanced cannabinoid products in domestic and international markets. As a global leader, MediPharm Labs has completed its commercial exports to Australia and fully commercialized its wholly owned Australian extraction facility. MediPharm Labs Australia was established in 2017.

For more information, please contact:
Laura Lepore, Vice-President, Investor Relations
Telephone: 705-719-7425 ext 1525
E-mail: [email protected]


This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as of the date of this press release. Any statement that involves discussions regarding predictions, expectations, beliefs, plans, projections, goals, assumptions, future events or performance “Anticipates” or “does not prevent”, “plans”, “budget”, “forecast”, “forecast “,” estimates “,” believes “or” hears “or variations of such words and expressions or indicating that certain actions, events or results” may “or” could “,” would “,” could “or” would ” will be considered to occur or to be achieved) are not statements of historical fact and may be forward-looking statements. In this press release, forward-looking statements relate, among other things, to statements regarding: the terms and closing date of the offering; the growth of the Company’s Cannabis 2.0 product portfolio; an expanded portfolio of medical products and active pharmaceutical ingredients for export; pharmaceutical registrations; research and development relating to clinical trial formulations; sales and marketing in new markets; and the intended use by the Company of the proceeds of the Offering. Forward-looking statements are necessarily based on a number of estimates and assumptions which, although believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results to occur. and future events differ materially from those expressed or implied. by such forward-looking statements. These factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm Labs to obtain adequate funding; delay or failure to receive regulatory approvals; and other factors discussed in documents filed by MediPharm Labs, available on the SEDAR website at 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. Therefore, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, MediPharm Labs assumes no obligation to update any forward-looking statements of beliefs, opinions, projections or other factors, as they change.

Carol M. Barragan