Mr. David Pidduck reports

MEDIPHARM LABS CLOSES $4.5 MILLION SALE OF HOPE, BC FACILITY AND ANNOUNCES PLANS TO EXPAND EU GMP CULTIVATION CAPACITY AT NAPANEE FACILITY

Medipharm Labs Corp. has closed the sale of its facility in Hope, B.C., to Rubicon Organics Inc. for $4.5-million in cash. In parallel, the company is expanding annual international cultivation capacity at its EU (European Union) GMP-certified (good manufacturing practices) facility in Napanee, Ont., by approximately 30 per cent in 2025.

These developments underscore Medipharm's strategic focus on operational efficiency, financial strength and delivering premium pharmaceutical-grade cannabis products to a growing global customer base.

"This marks a significant milestone for Medipharm," said David Pidduck, chief executive officer of Medipharm. "We are optimizing our footprint by reducing expenses and monetizing dormant, non-core assets while simultaneously expanding where we see the greatest potential for immediate impact on our international growth. This sale also significantly improves our cash position and provides us with additional financial flexibility to pursue our strategic growth objectives."

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.

Medipharm has executed strategic divestiture of non-core assets alongside rigorous cost-saving initiatives to enhance efficiency and sharpen its operational and commercial focus. Medipharm has reduced operating expenses by over $40-million on an annualized basis in the past several years, compared with the combined Medipharm and Vivo Cannabis operations in the first quarter of 2022.

Medipharm's investment in expanding cultivation capacity by approximately 30 per cent at its EU GMP-certified Napanee facility enhances the company's ability to meet growing international demand for pharmaceutical cannabinoid products, particularly in Europe and Australia.

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 facility with ISO-standard-built (International Organization for Standardization) 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, 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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