Mr. David Pidduck reports

MEDIPHARM LABS ANNOUNCES TERMINATION OF THE PROPOSED SALE OF NAPANEE FACILITY TO KENSANA HEALTH

Medipharm Labs Corp. has terminated the previously announced sale of its facility in Napanee, Ont., to Kensana Health Inc., which was to be completed through the sale of the company's wholly owned subsidiary ABcann Medicinals Inc. to Kensana Health pursuant to the terms of a share purchase agreement entered into with Kensana Health.

The company has given notice of termination as required under the purchase agreement as Kensana Health did not meet certain agreed-upon terms and conditions within the timelines set out therein. Pursuant to the terms of the purchase agreement, Medipharm Labs will retain certain non-refundable deposits received from Kensana Health. For further details regarding the transaction, please see the company's press releases dated Dec. 17, 2024, and Jan. 16, 2025.

Medipharm's current, commercial agreements and operations at the Napanee facility are expected to continue without disruption.

Medipharm's experience in highly regulated global markets and unique suite of internationally recognized licences have positioned the company as a partner of choice to bring Canadian products to international markets. It is seeing increasing demand for its international business-to-business GMP services in both Barrie and Napanee.

"Growing our profitable international revenue was a critical element of our success in 2024. We will continue to use the Napanee facility to capitalize on international opportunities in 2025," said David Pidduck, chief executive officer of Medipharm.

About Medipharm Labs Corp.

Founded in 2015, Medipharm specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients and advanced derivative products utilizing a good-manufacturing-practice-certified facility with ISO standard-built clean rooms. Medipharm 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 develops, formulates, processes, packages and distributes cannabis and advanced cannabinoid-based products to domestic and international medical markets.

In 2021, Medipharm received a pharmaceutical drug establishment licence from Health Canada, becoming the only company in North America to hold a commercial-scale domestic good manufacturing practice 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 the Canna Farms medical e-commerce platform, and in Australia and Germany through Beacon Medical Australia Pty. Ltd. and Beacon Medical Germany 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.

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