MediPharm Labs Corp. (TSXV:LABS, OTCQX:MEDIF, FSE:MLZ) (“MediPharm Labs” or the “Company”) a around the world main in specialised, investigation-pushed cannabis extraction, distillation, purification and cannabinoid isolation, is content to announce initially quarter monetary results for the 3 months ended March 31, 2019.

MediPharm Labs Corp. (TSXV:LABS, OTCQX:MEDIF, FSE:MLZ) (“MediPharm Labs” or the “Company”) a around the world main in specialised, research-pushed cannabis extraction, distillation, purification and cannabinoid isolation, is joyful to announce initial quarter financial outcomes for the three months finished March 31, 2019. The consolidated financial statements and administration’s dialogue and evaluation for the interval can be out there on SEDAR and on

Critical Q1 2019 Financial and Year-to-Date Highlights

  • Income of $22 million, a 115% enrich over This tumble 2018, major the Canadian cannabis extraction-only company
  • Gross Gain of $6.9 million, Gross Margin 31%
  • Adjusted EBITDA(1) of $four.3 million, a 102% improve about This fall 2018, Modified EBITDA(1) margin of 20%
  • Sturdy, constructive cashflows from operations
  • Q1 cash flow consists of $7.6 million profits for preliminary cargo of massive non-general public label hashish oil agreement with a big Licensed Producer
  • Obtained increased than 5,000 kg (or 5 million grams) of dried hashish in last two weeks of Q1 from a number of Licensed Producers to fulfill sturdy need for personalized label selections
  • Ongoing crucial cash funding, additional mounting scale of operations to boost efficiencies via automation, greatly enhance throughput functionality and new equipment for diversified item traces with each other with distillates, vapeables, softgel caps and bottled cannabis oil
  • Been given about $7 million in cash proceeds from warrant physical exercises subsequent to March 31, 2019

“As a differentiated cannabis organization, we reached robust 1st quarter effects and set the speed for continued strong progress, marking our posture among major-tier Canadian cannabis organizations,” mentioned Patrick McCutcheon, Main Executive Officer, MediPharm Labs. “Our income and modified EBITDA performance, which more than doubled to $22 million and $4.3 million in our 1st whole quarter of operations, illustrates the benefit of our specialized aim and capability to execute as the Canadian market’s main extraction professionals and providers of high-quality cannabinoid-based spinoff formulations at scale. It also demonstrates our capability to transform revenue into constructive functioning money move – a vital milestone accomplished less than five months after receiving our sales licence.”

“Our very powerful commence to the calendar year involved signing our fifth, 3-calendar year tolling agreement, with TerrAscend Corp., and completing two new private label offer agreements in the quarter, increasing the full prospective value of our non-public label sales agreements to in excessive of $eighty five million in excess of a 15-thirty day period period from December 2018. This strong sales momentum continued effectively into the 2nd quarter, with several new agreements in procedure and a healthier pipeline beyond these.”

“In anticipation of expanded legalization in the slide of 2019, we are advancing our distillate and white label options platforms to improve our posture for vapeables, edibles and topicals as we be expecting our addressable current market and purchaser demand from customers to drastically improve. Our white label presenting will be an enduring gain and eye-catching resolution for LP’s, immediate-to-shopper models and CPG companies, which we hope will also accelerate our expansion in the months and a long time forward.”

Key Operational and Yr-to-Date 2019 Highlights

  • Executed a amount of non-general public label gross income agreements with probable gross sales value in excess of $85-million more than fifteen-month interval from December 2018, with a sturdy pipeline of more non-community label gross gross sales alternate options
  • Signed first all over the world non-community label sale settlement with AusCann Team Holdings Ltd. for export of cannabis oil from Canada to Australia for persistent ache medicines
  • Continued enlargement of white label solutions system, as deliberate, to provide formulation, producing and distribution businesses, along with energetic substances, for cannabis oil enter products together with for vapeables, edibles, drinks and topicals expected to travel long run margin enlargement
  • Appointed famend clinical expert and pharmaceutical researcher, Dr. Paul Tam, to the Board of Directors and Audit Committee
  • Appointed Braden Fenske, previous Team Products Director, Worldwide Strategic Marketing for Biosense Webster Inc., a Johnson & Johnson Corporation, to freshly made Chief Method Officer area to advance firm system, global advancement and strategic partnerships
  • Assembled numerous group of globally famend specialists to form our Science Advisory Committee

In close proximity to Phrase Catalysts

  1. New agreements in study course of
  2. Significant amount buys of dried hashish
  3. Canadian legalization of vapeables and edibles in drop 2019 results in just one other essential addressable marketplace for hashish derivatives
  4. On notice to prolong annual throughput capacity from a hundred and fifty,000 kg to 250,000 kg through 2019
  5. First oil cargo to AusCann Group Holdings in Australia from Canadian extraction-only firm
  6. Advancing around the world development approach – critical development on improvement of MediPharm Labs Australia state-of-the-artwork cannabis extraction facility with licensing anticipated H2/19
  7. Ongoing development toward European Union GMP certification to manage EU sector demand
  8. Identification and investigation of added jurisdictions for continued global enlargement alternatives in Europe, Latin The usa, the Caribbean and Africa

Very first Quarter 2019 Vital Economic Actions Strategic Initiatives

  1. Forge Added Domestic and Global Product sales and Provide Agreements: Utilizing a very first-mover and proprietary advantages, the Business is qualified on procuring selling price surroundings friendly, bulk dried hashish give, mounting wholesale non-general public label hashish aim (crude resin and distillate) production and value-included items, providers and tolling to earn new company domestically and internationally.
  2. Develop White-Label Methods System Like Formulation, Processing and Distribution Expert services: Expected legalization of vapeables, edibles, beverages and topicals in October 2019 can also be predicted to broaden the Company’s addressable marketplace for hashish derivatives and act as a catalyst to really encourage a broad array of direct-to-client brands and non-cannabis shopper packaged products corporations to hunt companions like MediPharm Labs for energetic substances in addition to formulation, processing and distribution.
  3. Improve cGMP-developed Output Ability: The Enterprise is on observe with the established up and commissioning of 2 additional main extraction traces at its Barrie facility which can be expected to lengthen annual processing functionality to 250,000 kg more than a finish of seven extraction traces. Utilizing cGMP methodology, a variety of extraction traces present versatility to devote to unique consumer batches and significantly strengthen productiveness. Flexibility about a number of extraction traces can be transformative, providing a continued competitive profit in the cannabis market.
  4. Attain European Union GMP Certification at Barrie Facility: Expect to attain certification within the H2 2019 enabling the Enterprise to serve significant European demand from customers.
  5. Total First Global Facility in Australia: Australian centre of excellence is predicted to be commissioned in H2 2019, pending licensing, and will act as hub to entry Asia-Pacific spots.  The facility is developed to give to cGMP necessities with an annual extraction capacity of roughly 75,000 kg of dried cannabis. The Australia spot is expected to provide a sturdy backdrop for cultivation given the favorable mounting scenarios the area the Business is hunting for to acquire regionally sourced lower-value give inputs for production.
  6. Expand Secondary Extraction Abilities: Advancing industrial-scale distillation and organization chromatography capabilities to give energetic pharmaceutical substances that call for cannabinoid purity of at the minimum 99.nine%.  Advancement is underway for specialised, proprietary chromatography processing with trials predicted to begin H2 2019.
  7. M&A and Joint Venture Prospects: The Corporation has established a sturdy pipeline of alternate options to duplicate its distinct enterprise mannequin in various jurisdictions and evaluating complementary acquisitions to extra enhance and velocity up growth.

To start with Quarter 2019 Monetary Results Summary

(one) Modified EBITDA is just not a acknowledged effectiveness measure underneath IFRS, does not have a standardized that implies and owing to this actuality may not be akin to comparable steps offered by unique issuers. Modified EBITDA is incorporated as a supplemental disclosure as a end result of Administration believes that these types of measurement presents a higher evaluation of the Company’s functions on a seamless basis by reducing confident non-income selling prices and charges or beneficial variables that are nonrecurring. Modified EBITDA is outlined as online loss excluding curiosity, taxes, depreciation and amortization, and share-dependent payment. Modified EBITDA has constraints as an analytical machine due to the fact it does not embody depreciation and amortization expense, curiosity revenue and expenditure, taxes, share-based compensation and transaction charges. Simply because of these limitations, Altered EBITDA should not be believed of as the only genuine evaluate of the Company’s efficiency and shouldn’t be thought of in isolation from, or as an alternate to, evaluation of the Company’s results as reported underneath IFRS. The most promptly equivalent evaluate to Adjusted EBITDA calculated in accordance with IFRS is working profits (loss). The above is a reconciliation of the Company’s doing the job decline to Adjusted EBITDA. See “Reconciliation of non-IFRS measures” inside of the Company’s Management’s Dialogue and Analysis for the interval finished March 31, 2019 for additional facts.

About MediPharm Labs Corp.

Launched in 2015, MediPharm Labs has the excellence of currently being the primary organization in Canada to expand to be a accredited producer for cannabis oil producing beneath the ACMPR with out 1st acquiring a cannabis cultivation license. This skilled concentrate on hashish concentrates from being built to cGMP (current Great Production Practices) and ISO regular-crafted crystal clear rooms and vital environments laboratory, permits MediPharm Labs to give purified, pharmaceutical-like cannabis oil and concentrates for superior spinoff items. MediPharm Labs has invested in an proficient, investigation-driven group, condition-of-the-artwork experience, downstream extraction methodologies and reason-designed amenities to ship pure, secured and exactly-dosed hashish goods to victims and customers. MediPharm Labs’ non-community label method is a abnormal margin enterprise for the Corporation, whereby it opportunistically procures dry hashish flower and trim from its rather a number of product or service present companions, to give cannabis oil concentration merchandise for resale globally on a non-community label basis.

Through its subsidiary, MediPharm Labs Australia Pty. Ltd., MediPharm Labs has additionally accomplished its computer software program of with the federal Workplace of Drug Handle to extract and import medical cannabis products in Australia.

For added info, please make contact with:
Laura Lepore, Vice President, Investor Relations & Communications
Phone: 705-719-7425 ext 216
Electronic mail: potential

NEITHER THE TSX Undertaking Exchange NOR ITS REGULATION Providers Supplier (AS THAT Time period IS Outlined IN THE Procedures OF THE TSXV) ACCEPTS Responsibility FOR THE ADEQUACY OR Precision OF THIS Launch.

CAUTIONARY Note With regards to Forward-Searching Information:

This information start accommodates “forward-on the lookout information” and “forward-searching statements” (collectively, “forward-seeking statements”) throughout the that means of the pertinent Canadian securities laws. All statements, apart from statements of historic real truth, are forward-on the lookout statements and are centered typically on expectations, estimates and projections as on the day of this information and facts launch. Any assertion that involves conversations with regard to predictions, anticipations, beliefs, programs, projections, targets, assumptions, potential occasions or efficiency (typically even so not all the time employing phrases akin to “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such phrases and phrases or stating that absolutely sure actions, events or outcomes “may” or “could”, “would”, “might” or “will” be taken to happen or be attained) generally are not statements of historic real truth and could also be forward-hunting statements. In this data launch, ahead-on the lookout statements relate to, amongst unique troubles, expectations for money period from latest contracts, rising merchandise choices and legalization of similar, expansion of R&D and IP, signing new gross gross sales and offer agreements, expanding white-label selections system, rising manufacturing capability, exportation to Australia, raising merger and acquisition and all over the world development pipeline, escalating secondary extraction capabilities, cGMP certification and the completion of Australian facility and establishment and licensing of operations in Australia. Forward-hunting statements are essentially primarily based typically upon a amount of estimates and assumptions that, while considered of very affordable, are matter to recognized and unfamiliar risks, uncertainties, and different parts which can set off the precise outcomes and long term situations to differ materially from these expressed or implied by these kinds of forward-looking statements. These parts embody, however ordinarily are not restricted to: ordinary organization, economic, aggressive, political and social uncertainties the absence of MediPharm Labs to purchase sufficient financing and the delay or failure to get hold of regulatory approvals. There will be no assurance that this sort of statements will present to be accurate, as specific results and foreseeable future situations may possibly differ materially from these expected in this kind of statements. Appropriately, viewers shouldn’t put undue reliance on the forward-hunting statements and information contained on this info start. Besides as needed by laws, MediPharm Labs assumes no obligation to exchange the forward-hunting statements of beliefs, viewpoints, projections, or various elements, should to they modify.

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