New IPO Targeting Cannabis Oils – 300% Growth in 2017

Canadian exports of medical cannabis oil exploded higher in 2017 – and it looks like this is the very beginning of a powerful trend that is creating another great opportunity for investors.

According to data shared with Marijuana Business Daily by Health Canada, Canadian exports of medical cannabis oil surged 300% in 2017, climbing to 400 kilos, up from 101 kilos in 2016.

Germany was the biggest importer at 169 kilos. Australia clocked in at 145 kilos. Here’s a table highlighting Canada’s largest cannabis oil export partners.

Looking forward, this is the very beginning of a powerful, long-term trend.

Medical cannabis oil exports from Canada are set to skyrocket in the next few years as the country legalizes cannabis and begins exporting all over the world. Keep in mind, Canada and the Netherlands are the only two countries in the world currently exporting cannabis oils – Canada should see a huge demand for exports.

Today – I am going to reveal an exciting new way to invest in this trend.

An early leader in Canada’s cannabis oils market is set to go public next week and it could be another explosive cannabis IPO. I expect to see a lot of interest on the Street.

  • Early leader in Canada’s cannabis oils market.
  • Operates a 70,000 square foot extraction facility in Ontario.
  • Building a 10,000 square foot extraction facility in Australia.
  • Just announced a string of new deals with some of Canada’s largest licensed producers.

Medipharm Labs (TSX: LABS) is a direct play on Canada’s high-growth cannabis oils market.

Shares are set to begin trading on the TSX on October 3 under the ticker symbol: LABS.

This could be a very exciting IPO.

Medipharm is headquartered in Ontario and is an early leader in Canada’s high-growth oils market.

MediPharm offers pharma grade, purified cannabis oil extraction services to Canada’s largest licensed producers.

In March 2018, Medipharm landed a cannabis oil production license from Health Canada and has been extracting cannabis oils at its brand new Ontario facility ever since June.

Medipharm Owns and Operates a 70,000 Square Foot Cannabis Oils Extraction Facility in Ontario

Medipharm’s crown jewel is a state of the art, 70,000 square foot cannabis oil extraction facility in Ontario.

The Ontario is currently capable of processing 100,000 kilos of dry cannabis flower per year – one of the largest extraction facilities in Canada.

Medipharm is currently executing a big expansion at this facility that will increase annual processing capacity to 250,000 kilos per year by the fourth quarter of 2018.

This new facility should be coming online just as Canada’s legal cannabis industry takes flight. The timing is perfect.

Medipharm is also wisely expanding into high-growth international markets.

Medipharm Australia is building a 10,000 square foot processing facility just east of Melbourne.

Here are a few more details directly from Medipharm Australia.

MediPharm Australia will operate in the South Gippsland region of Wonthaggi, 127km south east of Melbourne, where MediPharm Australia owns a large plot of industrial land acquired for the development of its purpose-built extraction facility.

MediPharm Australia’s state-of-the-art extraction facility will have an initial footprint of approximately 10,000 square feet (1,000 square metres) and has been designed to produce the same superior pharmaceutical grade cannabis oil with a focus on downstream secondary extraction methodology, distillation, cannabinoid isolation, purification and research & development as its purpose-built Health Canada licenced cannabis oil production facility in Barrie, Ontario.

Medipharm has Been Busy Closing Deals with some of Canada’s Largest Licensed Producers

Medipharm is on its way to showing big revenue growth. The company has announced a string of deals in the last few months that validate its value proposition and early industry leadership.

Medipharm has signed four supply agreements with four Canadian licensed producers.

That includes:

  • Indiva Limited (TSXV: NDVA)
  • James E. Wagner Cultivation (TSXV: JWCA) (OTC: JWCAF)
  • Bonify (privately owned)

Medipharm announced its latest deal on September 24, entering a supply agreement with Up Cannabis, a wholly owned subsidiary of Newstrike Brands Ltd (TSXV: HIP).

Newstrike Brands Ltd. (TSX-V:HIP) (“Newstrike”), is pleased to announce its wholly-owned subsidiary Up Cannabis Inc. (“Up Cannabis”), has entered into a supply agreement with MediPharm Labs Inc. (“MediPharm Labs”), pursuant to which Up Cannabis will supply MediPharm Labs with a total of up to 1,200 kg of excess cannabis product in the form of flower and shake that will be used for the purposes of extraction and the creation of cannabis oil and/or distillate.

Medipharm is off to a great start. The company is currently negotiating with more licensed producers and I am expecting to see a string of new deals hit the wire in the next few months.

The Big Picture on Canadian Cannabis Oil and Medipharm

Canada’s cannabis oil industry is set to explode in the next few years. Medipharm is a new way to cash in on the trend. This company is an early industry leader and set to start trading on the Toronto Stock Exchange on October 3.

About the Author

Michael Vodicka is an equity analyst with more than 20 years of experience trading and investing. His research has been featured in some of the industry’s most respected publications. He has been investing and leading investors in the cannabis sector since 2013.