MediPharm Labs Corp (OTCMKTS:MEDIF) entered a contract manufacturing deal for packaging and filling of vaporizers for Cronos Group’s (NASDAQ:CRON) recreational use brand, COVE subject to approval form Health Canada.
CMA deal between MediPharma and Cronos Group
MediPharm is a wholly-owned Cronos Group subsidiary that will be producing premium cannabis vaporizer devices for the company. With the signed contract manufacturing agreement, MediPharm will use its proprietary equipment and knowledge to offer filling services of premium quality formulate cannabis concentrate for Cronos. Equally, the subsidiary will provide packaging and labeling services to required standards for its parent company. The CMA has an initial term of two years, but this has an option of renewal once the term expires.
Pat McCutcheon, the CEO of MediPharm Labs, stated that just a day before the legalization of concentrates in Canada they added Cronos Group to the company’s growing white-label platform. He added that MediPharm would leverage its technology, expertise, as well as its large-scale vape filling abilities. This will help assist Cronos Groups in the delivery of premiums, purity assured as well as Health Canada approved cannabis derivative product. This will help Cronos Group in advancing its industry-leading status.
This is the second time the companies are collaborating this year. In May they entered a private label large scale resin supply agreement as well as a cannabis concentrate program deal that will see the companies work together.
The deal offers Cronos a chance to create premium products
Cronos Group CEO, Mike Gorenstein, said that the collaboration with MediPharm will provide an option and quality that they are seeking as they look to introduce their proprietary vape devices. He added that Cronos Group has the dedication and commitment to ensure it continues to lead the cannabis industry with the introduction of cannabis derivatives to the burgeoning Canadian marketplace.
Cronos Group aims at offering customers the best experience through the delivery of premium cannabis products. The company is growing its brand portfolio which includes two adult-use brands, Spinach and COVE as well as PEACE NATURALS.