As a leader in specialized and research-driven cannabis extraction, Medipharm LABS has grown rapidly to become Canada’s leading producer of purified, pharma grade cannabis oil and concentrates, which are highly sought after raw materials for advanced derivative products.
The company owes its success to a number of factors, such as being the first and only Canadian LP with active sales and production license solely for Cannabis Oil, and this gives it a huge advantage to grow and a good place for investors to put their money into.
To help you understand clearly what Medipharm Labs does, below is a breakdown of their services.
What we do
1. Contract processing services
They offer extraction and purification services only to Canadian and Australian authorized licensed producers and appropriate international growers.
In this model, they supply cGMP cannabis oil only to companies that are approved by Health Canada and Office of Drug Control Australia, which can then repackage and sell the product under their own brand.
2. White label production
Their white label production service is basically a Joint Venture Model, in which they sell cannabis concentrate as a raw material to other companies, which then create their own finished, ready-to-sell products. They can even provide precisely dosed concentrates that are specifically suited to the final product that our clients produce.
As you can see, their business model puts us at the top of the supply chain and therefore, they have a very big market of companies that require our cannabis oil and concentrate for them to continue production. This translates to huge profit margins and a very huge potential to grow.
Recent Business Deals
Medipharm Labs success and expected growth can be seen in some of their recent deals which include:
1. $35 million private label cannabis oil sale agreement
In this agreement, a leading licensed producer agreed to immediately purchase cannabis oil worth close to $8 million up front, then spend another $27 million to buy the same oil from them over a 1-year period from March 2019, with the option to buy an additional $13.5 million more over the same period.
2. New cannabis oil agreements and completion of first supply shipments
Medipharm Labs signed 3 agreements towards the end of 2018, which saw the first shipment worth about $10 million leave the docks in December 2018.
Good for Investment?
Considering that the company was founded in 2015, it has proven to be a very profitable business because its share price and market capitalization have remained on an upward trend and therefore, as an investor, this makes it a good place to put your money into.
With the STOCK $LABS share price still being relatively low, this would be the best time to buy your way in as much as you can before it becomes too expensive.
Medipharm Labs is a good company to invest in because it has its own niche. Coupled with a very professional management team, the company’s business volume and high margins are only expected to grow.
As an investor, the indications are clear, from the growing market cap to the increasing high-value business deals that are in the public domain for you to see.