Canadian-based MediPharm Labs has struck a deal to sell its wholly-owned Australian subsidy to OneLife Botanicals for a minimum A$6.9 million.
The agreement includes the assets of MediPharm Labs Australia (MPLA), specialised licensing, operational knowledge, and Australian and New Zealand customers currently served from its Victorian facility.
All international contracts outside of Australia and New Zealand will remain with MediPharm Labs and be serviced from the firm’s Barrie, Ontario GMP facility.
MediPharm Labs said a review of its international manufacturing platform had identified significant savings in moving all domestic and international manufacturing to Canada. MPLA CEO Warren Everitt left in March after five years with the company.
It said the deal was a strategic fit for both parties, calling OneLife Botanicals “an emerging leader in the region for cannabis-based wellness and medical products, with plans to launch over-the-counter CBD products across Australia”.
MediPharm Labs CEO David Pidduck described the sale as “a major milestone” as the company “continues to focus on rightsizing… to achieve profitability”.
He added: “I want to personally thank our Australian team. This group of professionals are trailblazers in the Australian and international medical cannabis market, achieving major milestones such as multiple customer product launches and our first deliveries to Germany.
“OneLife Botanicals is gaining one of the most capable medical cannabis manufacturing teams in Australia.”
OneLife Botanicals CEO Andrew Grant said: “This purchase aligns and expedites the strategic aim of our organisation to produce high-quality medicinal cannabis products by integrating manufacturing into the end-to-end supply chain.
“The integration of this business with our existing cultivation facility facilitates savings in capital investment, access to operational efficiencies and establishes us as a significant supplier in the Australian medicinal cannabis industry.
“We intend to build on the existing customer base and develop additional product distribution opportunities to become a formidable participant in the market.”
The deal is subject to routine conditions and is expected to close within 90 days.