CAN: MediPharm Labs sells Napanee facility for $5.5 million

MediPharm Labs Corp. have entered into a share purchase agreement for the purchase and sale of MediPharm's facility in Napanee, Ontario through a disposition of all of the company's indirect equity interests in its wholly-owned subsidiary ABcann Medicinals Inc. to Kensana Health for $5.5 million in cash.

Pursuant to the Purchase Agreement, Kensana Health has agreed to acquire all of the issued and outstanding shares in the capital of ABcann from the company's operating subsidiary MediPharm Labs Inc. If the Transaction is successfully completed, through its acquisition of ABcann, Kensana Health will acquire the license in respect of the Napanee Facility as well as the building, land, and equipment associated with the Napanee Facility. Current commercial agreements and activities of the Company will stay with MediPharm Labs.

As part of the transactions contemplated by the Purchase Agreement, MediPharm Labs and Kensana Health will form a strategic partnership following the closing of the Transaction (the "Closing"), through the execution of a comprehensive supply and services agreement, leveraging MediPharm's advanced Good Manufacturing Practices ("GMP") manufacturing capabilities. Under this partnership, Kensana Health has agreed to supply select products and services to augment MediPharm's international brands and to support the Company's growing international customer base.