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MediPharm Labs Improves Domestic Sales Gross Margin with Termination of Shelter Cannabis Brands Royalty Agreement
MediPharm Labs Improves Domestic Sales Gross Margin with Termination of Shelter Cannabis Brands R...
About this update from Medipharm Labs Corp.
[{"type":"text","content":"\n \n \n \n MediPharm Labs Improves Domestic Sales Gross Margin with Termination of Shelter Cannabis Brands Royalty Agreement\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n MediPharm Labs and Shelter Cannabis Brands have terminated their royalty agreement with a one-time cash payment.\n \n \n Agreement includes the elimination of ongoing royalty payments, for a one-time lump sum payment.\n \n \n \n \n \n TORONTO\n \n \n ,\n \n \n Sept. 20, 2023\n \n \n /CNW/ - MediPharm Labs Corp. (TSX: LABS) (OTCQB: MEDIF) (FSE: MLZ) (\"MediPharm\", \"MediPharm Labs\" or the \"Company\") a company specialized in precision-based cannabinoids, is pleased to announce it has executed a supplementary agreement to its Asset Purchase Agreement with\n \n 1193269 B\n \n .C. Ltd. (o/a Shelter Cannabis) for the Shelter Cannabis Brands IP portfolio, ending any ongoing royalty payments after\n \n August 31, 2023\n \n .\n \n \n \n \n \n \n \n \n \n Under the existing Asset Purchase Agreement, executed in\n \n March 2022\n \n , MediPharm Labs purchased the IP of Shelter Cannabis Brands. This IP has been focused in market on Wildlife Cannabis domestic dry flower and pre-roll products that are manufactured and distributed via the MediPharm sites.\n \n \n This supplementary agreement allows for a significant improvement in this product line's gross margin, which will provide flexibility for the Company to further invest in the brand to drive sales, as it continues on the path to profitability.  In the last year, MediPharm has made significant improvement in its adjusted gross margin. In the last reported quarter, Q2 2023, this was approximately 21% vs negative 1% in Q2 2022.\n \n \n The Company appreciates the work done by the previous owners in creating the Shelter Cannabis and Wildlife brands, and their support and flexibility through the transition of the brands to MediPharm.\n \n \n MediPharm continues to review every product category and selling channel to optimize margins and streamline business operations to attempt to achieve the Company goal of ...