Licenced Producer Retains Right to First
Purchase of Oil or Distillate Created from Supplied
Cannabis
TORONTO, Sept. 24, 2018
/CNW/ - Newstrike Brands Ltd. (TSX-V:HIP)
("Newstrike"), is pleased to announce its wholly-owned
subsidiary Up Cannabis Inc. ("Up Cannabis"), has entered into a
supply agreement with MediPharm Labs Inc. ("MediPharm Labs"),
pursuant to which Up Cannabis will supply MediPharm Labs with
a total of up to 1,200 kg of excess cannabis product in the form of
flower and shake that will be used for the purposes of extraction
and the creation of cannabis oil and/or distillate.
"We are very pleased to partner with MediPharm Labs, a leader in
cannabis extraction technologies, for this arrangement," said
Jay Wilgar, CEO of Newstrike and Up
Cannabis. "This allows us to optimize revenue from our harvests and
our agreement gives Up Cannabis the right of first refusal in the
purchase of the extracted oil or distillate, supporting our new
product strategy as the adult-use market for these products becomes
legalized."
"MediPharm Labs has been building reserves of biological assets
in advance of legalization. Adding Up Cannabis as a supply partner
known for premium cannabis, strengthens our ability to produce a
steady supply of premium, pure, cannabis concentrates for this new
consumer market," says Pat
McCutcheon, CEO of MediPharm Labs. "We're ready to formulate
purified cannabis oil with our new valued partner."
About Newstrike and Up Cannabis
Newstrike is the parent company of Up Cannabis Inc., a licenced
producer of cannabis that is licenced to both cultivate and sell
cannabis in all acceptable forms. Newstrike, through Up Cannabis
and together with select strategic partners, including Canada's iconic musicians The Tragically Hip,
is developing a diverse network of high quality cannabis brands.
For more information, visit http://www.up.ca or
http://www.newstrike.ca
About MediPharm Labs Inc.
Founded in 2015, MediPharm Labs Inc. ("MediPharm Labs") is a
pioneer in the cannabis industry and has the distinction of being
the first company in Canada to
become a licensed producer for cannabis oil production under the
Access to Cannabis for Medical Purposes Regulations (ACMPR) without
first receiving a cannabis cultivation licence. This expert focus
on cannabis concentrates from our cGMP (current Good Manufacturing
Practices) and ISO standard clean rooms and critical environments
laboratory, allows MediPharm Labs to work with its established,
Health Canada-approved cultivation partners to produce
pharmaceutical-grade cannabis oil with a competitive advantage.
MediPharm Labs is research-driven and focused on downstream
secondary extraction methodology, distillation, and cannabinoid
isolation and purification. MediPharm Labs provides B2B contract
processing of cannabis to Canadian authorized licensed producers
and appropriate international growers, supplying integrity-assured
cannabis oil to qualified companies for sale under their own brand.
In addition, MediPharm Labs will supply raw materials,
formulations, processing and packaging for the creation of
ready-to-sell advanced derivative products. Through its subsidiary,
MediPharm Labs Australia Pty. Ltd., MediPharm Labs has also
completed its application process with the federal Office of Drug
Control to extract and import medical cannabis products in
Australia.
Website: www.medipharmlabs.com
Forward-Looking Information
This news release contains
forward-looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Newstrike
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements
including but not limited to the sale of cannabis to MediPharm Labs
and the exercise of the right of first refusal over oil or
distillate extracted from supplied cannabis, if any. Often,
but not always, forward-looking statements can be identified by the
use of words such as "plans", "expects" or "does not expect", "is
expected", "estimates", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Accordingly, readers should not place undue reliance on the
forward-looking statements and information contained in this press
release. Since forward-looking statements and information address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risks. Readers are cautioned that the foregoing list of
factors is not exhaustive. The forward-looking statements contained
in this news release are made as of the date of this release and,
accordingly, are subject to change after such date. Newstrike does
not assume any obligation to update or revise any forward-looking
statements, whether written or oral, that may be made from time to
time by us or on our behalf, except as required by applicable
law.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Newstrike Brands Ltd.