MediPharm Labs Corp. and Kensana Health Inc. have entered into a share purchase agreement for the purchase and sale of MediPharm's facility in Napanee, Ontario for $5.5 million in cash.
Pursuant to the Purchase Agreement, Kensana Health has agreed to acquire all of the issued and outstanding shares in the capital of ABcann from the Company's operating subsidiary MediPharm Labs Inc. If the Transaction is successfully completed, through its acquisition of ABcann, Kensana Health will acquire the license in respect of the Napanee Facility as well as the building, land, and equipment associated with the Napanee Facility. Current commercial agreements and activities of the Company will stay with MediPharm Labs.
As part of the transactions contemplated by the Purchase Agreement, MediPharm Labs and Kensana Health will form a strategic partnership following the closing of the Transaction (the "Closing"), through the execution of a comprehensive supply and services agreement, leveraging MediPharm's advanced Good Manufacturing Practices ("GMP") manufacturing capabilities. Under this partnership, Kensana Health has agreed to supply select products and services to augment MediPharm's international brands and to support the Company's growing international customer base.
This strategic Transaction aligns with MediPharm's focus on streamlining its operations and maximizing value for stakeholders. This Transaction is also expected to further complement the Company's already strong cash position and combined with the materially debt-free balance sheet, allow the Company to invest in future growth opportunities.
David Pidduck, CEO of MediPharm Labs, commented, "This Transaction reflects our commitment to enhancing operational efficiency while fostering strong partnerships that expand our global reach. By monetizing non-core assets and securing a strategic supply and services agreement, we are looking to ensure that MediPharm is well-positioned to continue delivering high-quality, GMP-certified cannabinoid solutions to our valued partners and customers worldwide."
For Kensana Health, the Transaction is expected to support its ongoing United States Food and Drug Administration ("FDA") registration process for its novel topical chronic wound treatment, with plans for subsequent approvals in Europe, U.K., Canada, the Middle East, Pacific Rim and Australia. Early research results have shown promising outcomes, with successful wound closure in patients who had previously failed standard treatments for over six months. Additional successful outcomes have been demonstrated across various wound types.
Ken Clement, CEO and Founder of Kensana Health commented, "As the original founder of ABcann in 2012, I am very grateful to the MediPharm team for facilitating the opportunity for Kensana Health to complete this acquisition."
Clement goes on to say, "This acquisition represents our commitment to advancing phytopharmaceutical development, specifically targeting severe medical conditions with significant unmet needs. This is a strategic move to expand our pharmaceutical manufacturing capabilities for multiple plants, and not just phytocannabinoids."