Medipharm Labs (TSX: LABS) announced a white labeling agreement with that of 1193269 B.C. Ltd. this morning, who is also more popularly known as Shelter Brand House. The white label agreement is centered on cannabis 2.0 products, with Medipharm delivering products under the “Wayfarer” brand to provincial distributors on behalf of Shelter.
The white label agreement itself is for a twelve month term which commenced in December 2019. The agreement has an option to renew, although specifics were not provided. The agreement states that Medipharm will conduct the filling, formulation, and distribution of Shelter branded vape cartridges. Medipharm will receive fees from Shelter in exchange, which are related to procurement, formulation, quality assurance, manufacturing, and distribution to provincial retailers. Medipharm will also receive a portion of sales from the products.
Essentially, it appears to be a long, round-about way of identifying that the white label agreement is essentially a royalty agreement, with Medipharm essentially providing Shelter with a portion of the revenues from the sale of product.
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Sales have already commenced on the product, with vape cartridges being sent to distributors in British Columbia, Saskatchewan, and Manitoba in December.
It is unclear whom is providing the cannabis used within the Shelter-branded vape cartridges.
Medipharm Labs last traded at $3.72 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.
