Avicanna Signs Wide-Ranging Strategic Manufacturing and IP Licensing Agreement with World-Class Canadian Manufacturer MediPharm Labs
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Toronto, Ontario - May 14, 2020 - Avicanna Inc. ("Avicanna" or the "Company") (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN), a biopharmaceutical company focused on the development, manufacturing and commercialization of organic and sustainable plant-derived cannabinoid-based products, is pleased to announce that the Company has entered into a multi-faceted strategic manufacturing agreement with MediPharm Labs Corp., (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) ("MediPharm Labs") involving licensed production, domestic and international distribution and intellectual property licensing. MediPharm Labs is a global leader in specialized, research-driven pharmaceutical-quality cannabis extraction, distillation and derivative products.
Under the agreement, which has an initial three-year term, MediPharm Labs will use the specialized contract manufacturing capabilities resident at its state-of-the-art Canadian production facility to produce Avicanna's advanced Rho Phyto(TM) medical cannabis products and Pura Earth(TM) topicals under license for commercial sales through Medical Cannabis by Shoppers(TM). The partnership provides Avicanna with a commercial pathway to Canadian and international sales, as well as pharmaceutical manufacturing of its products destined for clinical development with its Canadian clinical partners.
Additionally, Avicanna will grant MediPharm Labs a license to use proprietary Avicanna formulations to develop additional MediPharm Labs and white label branded products for the domestic and international market. MediPharm Labs has proven expertise in product development and will leverage its in-house sensory testing, processing and packaging capabilities to manufacture finished products using these formulations. MediPharm Labs' pharmaceutical and GMP-certified capabilities and international supply chain expertise will be deployed to produce and deliver the proprietary finished products to partners worldwide.
In commenting on the agreement, Aras Azadian, CEO of Avicanna said: "This best-in-class partnership combines years of our leading R&D, pre-clinical development and intellectual property with MediPharm Labs' unparalleled quality and pharmaceutical-level manufacturing capacity. This alliance will provide the medical community, and more importantly patients, with the most advanced product offerings backed by scientific rigour, data and world-class quality standards which the cannabis industry has yet to see. Furthermore, this signifies the evolution of the industry whereby leading companies are combining their competitive advantages for synergistic benefit for all stakeholders."
Avicanna's initial product offerings under the agreement will include oral drops, sublingual sprays and topicals. Avicanna also has a rich pipeline of formulations for sustained release tablets, transdermal patches, and other drug delivery mechanisms that it has developed over the past four years in collaboration with leading Canadian research institutions.
"This is an important and far-reaching agreement that makes great use of MediPharm Labs advanced pharma capabilities, GMP-certified production and international distribution expertise," said Pat McCutcheon, CEO of MediPharm Labs. "Since earning our first GMP certification in December to serve the global medical cannabis market, we have made significant strides in developing our business. This partnership with Avicanna, a market leader and proven innovator, is a great example. We intend to deploy our capabilities including our knowledge of consumer and patient categories to ensure this collaboration lives up to its great potential."
About MediPharm Labs
Founded in 2015, MediPharm Labs specializes in the production of purified, pharmaceutical quality cannabis oil and concentrates and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, they formulate, consumer-test, process, package and distribute cannabis extracts and advanced cannabinoid-based products to domestic and international markets. As a global leader, MediPharm Labs has completed commercial exports to Australia and is nearing commercialization of its Australian Extraction facility. MediPharm Labs Australia was established in 2017.
About Avicanna Inc.
Avicanna is an Ontario, Canada based corporation focused on the development, manufacturing, and commercialization of plant-derived cannabinoid-based products through its two main business segments, cultivation and research and development.
Avicanna's two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia are the base for Avicanna's cultivation activities. These two companies are licensed to cultivate and process cannabis for the production of cannabis extracts and purified cannabinoids including cannabidiol (CBD) and tetrahydrocannabinol (THC).
Avicanna's research and development business is primarily conducted out of Canada at its headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto. Avicanna's scientific team develops products, and Avicanna has also engaged the services of researchers at the Leslie Dan Faculty of Pharmacy at the University of Toronto for the purpose of optimizing and improving upon its products.
Avicanna's research and development and cultivation activities are focused on the development of its key products, including plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics, and Extracts (defined as plant-derived cannabinoid extracts and purified cannabinoids, including distillates and isolates), with a goal of eventually having these products manufactured and distributed through various markets.
SOURCE Avicanna Inc.
For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email at email@example.com.
Cautionary Note Regarding Forward-Looking Information and Statements
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, "may", "would", "could", "will", "likely", "expect", "anticipate", "believe, "intend", "plan", "forecast", "project", "estimate", "outlook" and other similar expressions, and includes statements with respect to the ability of Avicanna or MediPharm Labs to perform under the agreement, the manufacturing of the products, the shipping and delivery of the products to customers in Canada and worldwide, and the appropriate education and marketing efforts. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment; and the availability of licenses, approvals and permits.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to current and future market conditions, including the market price of the common shares of the Company, the delay or failure to receive regulatory approvals, and the risk factors set out in the Company's annual information form dated April 15, 2020, filed with the Canadian securities regulators and available under the Company's profile on SEDAR at www.sedar.com.
The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. All information in this press release with respect to MediPharm Labs was supplied by MediPharm Labs for inclusion herein.
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