Tuesday, October 21, 2025

Medipharm Labs Delays Q1 Financials, Announces Inventory Impairments

Medipharm Labs (TSX: LABS) this morning announced that it will be delaying its first quarter financial results, with the company giving a blanket statement that it expects to file by the end of June. Furthermore, the company also announced that it will be conducting impairments on inventory among other items as a result of the ongoing pandemic.

With respect to inventory, Medipharm this morning let it be known that the company is expecting to impair anywhere from $10 to $15 million within its first quarter financials. The company blamed the impairment on reduced demand due to the current coronavirus pandemic. Overall, a number of reasons were cited that lead up to the announcement within the news release including:

  • Reduced staff at provincial distributors and private retailers, which the company claims resulted in reduced purchase orders and delivery availability, impacting white label sales.
  • Delays in anticipated expansions of retail channels and slower licensing of cannabis derivative businesses.
  • Producers being slower to implement capabilities to convert bulk extract to finished goods due to operational slowdowns.

These factors were all blamed for oversupply conditions of bulk extract product within the Canadian market, including subsequent lower selling price points and volumes, which ultimately resulted in these writedowns occurring. The company provided no guidance on revenue figures.

Medipharm Labs reported product inventories of $51.5 million as of December 31, 2019. The company last traded at $1.54 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.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

Medipharm Labs Applies for Nasdaq Listing

Medipharm Labs (TSX: LABS) announced this morning that it has submitted an application for listing...

Tuesday, November 5, 2019, 09:37:00 AM

Hexo Has Filed A $35 Million Counterclaim Against Medipharm Labs

It appears that Hexo Corp (TSX: HEXO) (NYSE: HEXO) has filed a counterclaim against Medipharm...

Thursday, June 18, 2020, 11:48:39 AM

Medipharm Labs: Canaccord Lowers Targets After Earnings

On August 16, Medipharm Labs (TSX: LABS) reported their second quarter financial results. The company...

Friday, August 20, 2021, 07:54:00 AM

Harvest Moon: Valens Company VS Medipharm Labs – Share Price Indicators

Of the 100 companies in the BI Global Cannabis Competitive Peers index tracked in 2019,...

Sunday, June 21, 2020, 05:00:00 PM

Medipharm Labs Expands Facility Threefold, Introduces New Automated Processes

Medipharm Labs (TSX: LABS) has received Health Canada licensing for its newly expanded production facility...

Monday, December 30, 2019, 08:25:07 AM