MrDavid Pidduck of reports

MEDIPHARM ACHIEVES KEY MILESTONE TOWARD $4.5 MILLION CASH SALE OF HOPE FACILITY, ON TRACK TO CLOSE IN JUNE

All conditions precedent related to Medipharm Labs Corp.'s previously announced agreement for the sale of Medipharm's facility in Hope, B.C., to Rubicon Organics Inc. for $4.5-million in cash, have been removed.

With these conditions met, the $4.5-million sale of the Hope facility remains on track to close in June, 2025. The transaction will bolster Medipharm's already strong cash position and virtually debt-free financial status.

David Pidduck, chief executive officer of Medipharm, commented: "The $4.5-million in cash proceeds from divesting non-core assets supports our road map to deliver long-term value for shareholders and partners, enabling continued focus on accelerating international growth and exploration of key acquisition opportunities."

The Hope facility was acquired as part of the successful Vivo Cannabis Inc. acquisition in 2023, and the company ceased all Hope facility commercial activities in 2024, consolidating key operations at its other facilities. The consolidation of operations was all part of Medipharm's continuing strategy to reduce operating and overhead costs and monetize redundant assets. The aggregate value of the company's asset sales since 2022, including the Hope facility, totals approximately $14-million, all of which has contributed to reducing costs and boosting the company's balance sheet.

Since the second quarter of 2022, when implementation of this strategy began, to the first quarter of 2025, Medipharm has reduced operating and overhead costs by approximately $42-million on an annualized basis.

About Medipharm Labs Corp.

Founded in 2015, Medipharm Labs 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 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 good manufacturing practices 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, 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.

We seek Safe Harbor.