As a first move in the cannabis industry, Mr. Greg McLeish, who was Mackie Research analyst was the one to initiate the coverage of MediPharm Labs Corporation along with a “buy” ranking.
Mr. Greg McLeish said: “MediPharm … was the first Canadian LP exclusively licensed for cannabis oil extraction under the ACMPR when it was awarded its oil production license in March 2018,”
He went on to add: “If the Canadian market follows some of the trends seen in the U.S. where recreational marijuana is legal, products derived from cannabis oils should become a large and growing segment of the market. MediPharm has the capacity to enable its clients to be first movers in this high margin market segment and as a result, we believe its services will likely be highly sought after through our forecast periods.”
He further continued with: “MediPharm intends to position itself as an agnostic service provider for all extraction needs in the industry. To date, the company has signed over 20 agreements with Canadian Licensed Producers, including 15 supply agreements, 6 processing agreements, and 5 sales agreements. The company has signed over $85-million in private label sales agreements that will be delivered over a 15-month period (starting December 2018). An 18-month contract with globally-recognized Canopy Growth is a testament to the company’s quality of operations.”
Mr. McLeish highlighted all the possible option that existed for the firm.
The Mackie Research analyst stated: “The Company has made significant progress in international expansion with the development of MediPharm Labs Australia, which will service all of Australia and the Asia Pacific,”
He continued: “Construction of a facility in Victoria has already commenced and is expected to be complete in H2 2019 pending receipt of the appropriate licensing. In Australia, MediPharm has been working with 25 cultivators to provide supply inputs and secure private label agreements. The company recently signed a two-year private sale agreement with Ausgang, whereby MediPharm will supply AusCann with private-label cannabis oil over the period starting Feb. 20, 2019. The Australia facility is expected to act as an import/export hub for all of Asia Pacific, local regulations permitting.”