FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “MediPharm Labs Signs First International Private Label Sale Agreement With AusCann for Cannabis Oil Export to Australia”
MediPharm Labs Corp. (OTCQB: MLCPF) (TSX-V: LABS) is pleased to announce that its wholly-owned subsidiary, MediPharm Labs Inc., has entered into its first definitive international sales agreement, dated February 20, 2019, with AusCann Group Holdings Ltd. to supply private label purified, pharmaceutical grade cannabis oil concentrates, or resin, from MediPharm Labs’ own inventory of oil for export to Australia.
Founded in 2015, MediPharm Labs has the distinction of being the first company in Canada to become a licensed producer for cannabis oil production under the ACMPR without first receiving a cannabis cultivation licence.
The cannabis industry saw strong investor support throughout 2018, which had also carried over into 2019. A slew of new cannabis companies listed their stocks on various exchanges such as the Canadian Securities Exchange, the New York Stock Exchange, and the Nasdaq Stock Exchange. While many of those to have listed are still small-cap companies, the booming industry has allowed some to capitalize on the opportunity and become multi-billion dollar corporations. Large investments are also pouring into the market from other sectors such as the beverage and tobacco industry, further fueling development. Even though the industry is witnessing a robust momentum, the concern over federal regulatory laws remains. Nonetheless, based on current milestones, such as Canada legalizing cannabis entirely and more U.S. states adopting positive legislative stances on the plant, the industry has the potential to broaden into an explosive market. According to data compiled by MarketsandMarkets research, the global cannabis market size is expected to grow from USD 10.3 Billion in 2018 to USD 39.4 Billion by 2023. Additionally, the market is projected to increase at a CAGR of 30.7% throughout the forecast period.
Due to the illegal nature of the cannabis industry, the medical segment currently accounts for the majority of the overall market value. Many countries have legalized cannabis for medical applications to treat conditions such as arthritis, chronic pain, and cancer. However, the recreational segment is witnessing substantial acceleration, primarily driven by concentrates. Regardless of the application though, the THC-dominant sector is propelling the overall industry growth. THC remains heavily regulated as opposed to its counterpart, CBD, because of its psychoactive effects. Yet, THC is also increasingly becoming adopted for both recreational and medical purposes due to its potent effects, causing it to hold the largest market share as well as register the highest CAGR among cannabis segments. Via Forbes, Scott Greiper, the President of Viridian Capital Advisors, said that the pace of legalization is accelerating around the world, not just in the U.S., for both medical and recreational marijuana. Greiper notes that the biggest drivers for creating a large consumer market are: the lifting of the stigma of marijuana; globalization; more advanced technology for agriculture, genetics, biotechnology, and the extraction business coming into a mom-and-pop industry. “This is a very dynamic marketplace for investors and acquirers,” said Greiper. “This is driving companies to become more efficient and more profitable operators.”
For more information, please visit: MediPharm Labs Corp.
For more corporate news on MediPharm Labs Corp., check out the Buzz on the Street
About Buzz on the Street: One of FinancialBuzz.com’s latest corporate and financial news shows, covering the latest trending stock market news. Buzz on the Street looks to become a leader in corporate video news dissemination. Buzz on the Street is 100% original content, brought to you by Financial Buzz Media.