Medipharm Labs Corp (OTCMKTS:MEDIF) Clinches A Deal To Supply High Quality Cannabis To Cronos Group Inc (NASDAQ:CRON)

Medipharm Labs Corp (OTCMKTS:MEDIF) has entered a supply accord with Cronos Group Inc (NASDAQ:CRON) to supply high quality cannabis under the private label. The deal is worth $30 million and valid for 18 months. The contract could be extended to 24 months making the deal value to $60 million.

Cronos subsidiary – Peace Naturals Projects Inc will source high quality cannabis concentrates under the bulk resin supply accord from Medipharms Labs Inc., a wholly subsidiary of Medipharms.

As per the terms of the agreement signed on May 13, 2019, Medipharm Labs will receive dried cannabis in large quantities for processing at its specialized facility for a fee. Medipharm Labs will convert the dried cannabis into premium cannabis oil and bulk resin and sell back to Cronos.

A separate arrangement

Cronos has also inked a separate pact to use the Barrie, Ontario based extraction facility of Medipharm for some processing requirements.

Chief Executive Officer of Medipharm, Patrick McCutcheon said the company is pleased to associate with Cronos in its quest to introduce innovative products in the evolving cannabis industry of Canada. He further said the company is excited to bag the order for good quality concentrates under the private label. Medipharms will play a vital role in supporting Cronos with its expertise and modern extraction facilities to promote growth.

Chief Executive Officer of Cronos said the company looks to work with companies such as Medipharms for their high quality inputs and services for its products as the cannabis industry matures and develops. The company along with Medipharms will strive to introduce new products as it expects the launch of derivates this fall in Canada.

Cannabis manufacturing license

Medipharm Labs Australia Pty. Ltd., a subsidiary of Medipharms, has announced the receipt of a production license from AODC (Australian Office of Drug Control). The license allows the company to establish its footprint in the nation and capitalize on the growing demand for cannabis as an early mover.

Managing Director of Medipharm Labs Australia, Warren Everitt said the company is pleased to receive the manufacturing license under the Narcotic Drugs Act 1967. The license, which is granted on May 21, 2019, allows the company to play a lead role in the production of cannabis in Asia-Pacific and in Australia.


Cronos Group Inc (NASDAQ:CRON) Inaugurates Cronos Device Labs In Israel To Develop Innovative Vaporizer Devices

Cronos Group Inc (NASDAQ:CRON) steps up efforts to offer cannabis experience to the users in the form of vapor. The company opened an R&D Center – Cronos Device Labs in Israel to develop new vaporizer devices and offer enhanced cannabis experience to the needy.

Experienced Staff

The new R&D center expands the footprint of Cronos and puts in a leadership position on the world stage in the production of next generation vaporizer devices. A team of 23 members comprising electrical, mechanical, and software engineers and product designers and formulation/ analytical scientists are posted at this advanced R&D Center. The new product offerings help to deliver tailored cannabinoid vapor experience to the users.

Vapor gained popularity among the population. It makes Cronos a clear winner in the cannabis vapor technology. CEO, President and Chairman of Cronos, Mike Gorenstein said the inauguration of new R&D Center in Israel is a vital step in the innovation of cannabinoids. It drives the long-term success for the company and improves shareholder value while helping to deliver a quality experience to the users.

General Manager of Cronos Labs, Arye Weigensberg said the vaporization space is growing at a fast pace. Consumers are looking at this innovative method to enhance cannabinoid experience. However, few options are available for the consumers in this space and it is still in the infant stage. The company’s strategy is to develop innovative formulations and vaporizers and provide full-blown experience of cannabinoid to the consumers.

120% increase in revenues in Q1

Cronos has posted robust revenues of $6.5 million in Q1 2019, an increase of 120% from Q1 2018. The adult use cannabis mainly cannabis oil has contributed to the considerable increase in revenues. The sales of adult use cannabis have increased from 501 kilograms in Q1 2018 to 1,111 kilograms in Q1 2019.

Altria Group Invests $2.4 billion in Cronos

Altria Group Inc. has invested $2.4 billion in Cronos in March 2019. It has got voting interest of 45% in Cronos for the investment. The company also received warrants that allow acquiring additional 10% stake in Cronos in the next 4 years. Cronos will use the funds for commercialization and product development efforts.


Cronos Group Inc (NASDAQ:CRON) (TSE:CRON) Gears Up For More Business Success As It Delivers Encouraging Results

Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) announced the financial results for the second quarter of 2018 amid positive energy all across the company.

As per Mike Gorenstein, CEO of Cronons Group, the company has focused on setting the stage and establishing the group’s strategy for future growth during the quarter. In the period, the company is reported to have “delivered encouraging results… with sales growing among all our products and channels.” The CEO further commented that there have been impressive improvements in cultivation yields since the start of the year, and that “continued business development success in penetrating new markets and establishing new partnerships for expansion.

Cronos Group partners with Greenhouse Partners

Speaking of partnerships, Cronos Group announced the coming together of the company with Greenhouse Partners to form Cronos Growing Company Inc., which will focus on the development, construction and operation of a “stae-of-the-art purpose-built” for production of marijuana in Kingsville, Ontario.

Cronos Group hopes that when the planned construction of more square feet of greenhouses is complete, the firm will be able to more than double the cultivation rate of cannabis to ensure a constant flow of raw cannabis for processing.

Financial results and business highlights

Per the press release, the firm reported strengthened liquidity by raising $100 million of gross proceeds through a bought deal offering of common shares. The company also reported an increase of $2.8 million in revenue totaling $3.4 million as compared to $0.6 million as of the second quarter of 2017. The company attributed the increase of the revenue to the expansion in patient onboarding, an increase in sales price and finally, the continued growth in the company’s cannabis oil offering.

The sales in cannabis oil accounted for 46% quarter-over-quarter of domestic medical sales. Meanwhile, the company reported a 46% increase in finished goods inventory

Per the report, the construction of Building 4 is on schedule whereas Cronos Australia was granted medicinal cannabis license. The release also revealed that the company entered into strategic partnership with Delfarma in a deal that will see the distribution network of the company widen.

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