- MediPharm Labs (LABS) has been awarded a favourable summary of judgement in the Ontario Court of Justice
- The judgement is in connection with a supply agreement dispute in the amount of $9.8M
- This summary judgement, subsequent payment and sale of the company’s Australian facility, will provide the company with over $16M in cash
- MediPharm Labs develops and manufactures pharmaceutical-grade cannabis concentrates, active pharmaceutical ingredients and advanced derivative products
- MediPharm Labs Corp. (LABS) opened trading at C$0.075
MediPharm Labs (LABS) has been awarded a favourable summary of judgement in the Ontario Court of Justice.
The judgement is in connection with a supply agreement dispute in the amount of $9.8M.
On January 24, 2020, MediPharm Labs filed a statement of claim in the Ontario Superior Court of Justice against one of its long-term customers of cannabis concentrates. The claim related to the payment of outstanding amounts due for products shipped to and received by the customer and deposits owed by the customer for committed amounts not yet shipped.
On February 26, 2020, the defendant filed a statement of defense and counterclaim. The Ontario Court of Justice has dismissed this counterclaim.
This summary judgement and subsequent payment, and recent conditional sale of the company’s Australian facility, will add over $16M in cash, strengthening the company’s balance sheet.
David Pidduck, CEO of MediPharm Labs commented on the news.
“In the early days of the nascent cannabis industry many companies faced risks in collecting large receivables. This summary judgement will allow us to collect this $9.8M, which will dramatically strengthen our balance sheet. MediPharm now has many customers across multiple channels and our accounts receivable are healthy. The collection of this cash will significantly improve MediPharm’s cash position and give us flexibility to consider M&A opportunities.”
MediPharm Labs develops and manufactures pharmaceutical-grade cannabis concentrates, active pharmaceutical ingredients and advanced derivative products.
MediPharm Labs Corp. (LABS) opened trading at C$0.075.
