Medipharm Labs (TSX: LABS) has entered into its second white label supply agreement with its Australian counterpart for the New Zealand market. The white label agreement will see the firms Australian division supply Cannasouth Plant Research New Zealand Limited with cannabis oil products.
While Medipharm Labs determined that the contract was material enough to make a news release in relation to it, evidently the specific details of the contract were not. The company identified that the supply agreement will be for a period of two years, with Medipharm supplying GMP certified cannabis oil to Cannasouth. Additionally, Cannasouth will be the exclusive purchaser of “certain formulations and dosage forms.”
And that’s where the details end of the supposedly material contract. It’s unclear what the value of the agreement amounts to, associated quantities agreed to under the agreement, or just what part exactly makes the news overly material for a firm that generated $129.2 million in revenues for 2019.
The supply arrangement itself is contingent on confirmation that products meet quality standards outlined by New Zealand Medicines and Medical Devices Safety Authority, and Cannasouth confirming certain insurance requirements.
Medipharm Labs last traded at $1.82 on the TSX.
Information for this briefing was found via Sedar and MediPharm Labs. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
