Mr. David Pidduck reports

MEDIPHARM LABS ANNOUNCES $2.1M DEBT REPAYMENT

Medipharm Labs Corp. has paid off the entire remaining convertible debt amount of $2.1-million, leaving the company materially debt-free.

With this debt repayment, Medipharm now enjoys a robust financial position with more than $13-million in cash and full ownership of three facilities. This achievement reflects the company's prudent financial management and commitment to maintaining a strong balance sheet.

Medipharm reported an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $100,000 in Q2 2024 (for the three months ended June 30, 2024), demonstrating near-break-even performance. The company's financial performance, combined with the recent debt repayment, gives management high confidence in the company's ability to invest in its operations and continue to drive long-term growth.

"Becoming materially debt-free is a significant milestone for Medipharm Labs," said David Pidduck, chief executive officer of Medipharm Labs. "Our strong cash position and near-break-even adjusted EBITDA reflect our disciplined approach to financial management. We are well positioned to focus on the future and leverage our resources to pursue strategic growth initiatives."

Medipharm Labs remains committed to its mission of providing high-quality, cannabis-based health and pharmaceutical products and delivering value to its shareholders.

About Medipharm Labs Corp.

Founded in 2015, Medipharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (APIs) and advanced derivative products utilizing a GMP-certified (good manufacturing practices) facility with ISO (International Organization for Standardization) standard-built clean rooms. Medipharm Labs has invested in an expert, research-driven team; state-of-the-art technology; downstream purification methodologies; and purpose-built facilities for delivery of pure, trusted and precision-dosed cannabis products for its customers. Medipharm Labs develops, formulates, processes, packages and distributes cannabis and advanced cannabinoid-based products to domestic and international medical markets.

In 2021, Medipharm Labs received a pharmaceutical drug establishment licence from Health Canada, becoming the only company in North America to hold a commercial-scale domestic GMP licence for the extraction of multiple natural cannabinoids. This GMP licence was the first step in the company's current foreign drug manufacturing site registration with the U.S. Food and Drug Administration.

In 2023, Medipharm acquired Vivo Cannabis Inc. which expanded Medipharm's reach to medical patients in Canada through Canna Farms medical e-commerce platform and in Australia and Germany through Beacon Medical Pty. and Beacon Medical GmbH. This acquisition also included Harvest Medical Clinics in Canada, which provides medical cannabis patients with physician consultations for medical cannabis education and prescriptions.

The company carries out its operations in compliance with all applicable laws in the countries in which it operates.

We seek Safe Harbor.