MediPharm Labs Corp. of Toronto (TSXV : ROMJ ) (OTCQX-MEDIF) has agreed to cash out C$4.5 million to Rubicon Organics, (TSXV : LABS ) (OTCQX-MEDIF). This capital boost comes after another plant sale failed earlier this month.
The sale of the defunct facility in the town of Hope – which MediPharm shuttered last year as part of operations consolidation – will help bolster the company’s cash position and balance sheet, giving it more opportunities to pursue other acquisitions, CEO David Pidduck said in a press release.
“The sale of the Hope Facility strengthens not only our cash position but also our 2025 focus – investing in our international and medical growth strategies as a global leader in pharmaceutical cannabinoid solutions,” Pidduck said.
It is anticipated that the deal will close by the end of second quarter this year.
MediPharm made the announcement just a few weeks ago that Kensana Health failed to meet specified criteria in a separate agreement to sell them a cultivation plant in Ontario for C$5.5M.
The most recent quarterly report of the company, ending Sept. 30th, showed a decrease in revenue. There was a C$2.7m net loss and only C$13m left in the banks.