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Marijuana

Cronos Group’s (NASDAQ:CRON) And MediPharm Labs Corp (OTCMKTS:MEDIF) Sign A Contract Manufacturing Deal

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.

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Marijuana

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.

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