Medipharm Labs Corp (TSE: LABS) (OTCMKTS: MEDIF) (FRA: MLZ) will no longer be selling its subsidiary’s Ontario cultivation facility due to the proposed buyer failing to live up to their end of the deal. The sale was previously announced in December.
Kensana Health, a biotech company with an interest in medical cannabis research and other plant medicines, was planning to purchase the complex on the outskirts of Napanee for C$5.5 million. But, it did not meet certain unspecified obligations, according to MediPharm.
“Kensana Health did not meet certain agreed-upon terms and conditions within the timelines set out therein,” MediPharm explained.
The facility, built by Conviron and run by the company’s subsidiary ABcann Medicinals, has been in operation since 2014. It is capable of producing about 75 kilograms of medical cannabis flower per month.
“We will continue to use the Napanee Facility to capitalize on international opportunities in 2025,” MediPharm chief executive, David Pidduck, said in a press release on Feb. 10 announcing termination of the arrangement. MediPharm will get to keep certain non-refundable fees from Kensana.
Extraction specialist MediPharm Labs bails on Ontario facility sale
