John SchroyerToronto-based MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) agreed to sell one of its cultivation and production facilities in British Columbia to competitor Rubicon Organics (TSXV: ROMJ) (OTCQX: ROMJF) for C$4.5 million in cash, providing a capital infusion after another facility sale fell through earlier this month.
The sale of the defunct facility in the town of Hope – which MediPharm shuttered last year as part of operations consolidation – will help bolster the company’s cash position and balance sheet, giving it more opportunities to pursue other acquisitions, CEO David Pidduck said in a press release.
“The sale of the Hope Facility strengthens not only our cash position but also our 2025 focus – investing in our international and medical growth strategies as a global leader in pharmaceutical cannabinoid solutions,” Pidduck said.
The deal is expected to close in the second quarter of this year.
The sale comes just weeks after MediPharm announced that a separate deal, to sell a cultivation facility in Ontario to Kensana Health for C$5.5 million, failed to close after Kensana didn’t meet specified criteria.
In the company’s most recent fiscal quarter, which ended Sept. 30, it reported decreased revenue, a net loss of C$2.7 million, only C$13 million in the bank and an accumulated deficit of C$185 million.
