Minority ownership stake provides exposure to the Australian medical cannabis market
MARKHAM, ON, Nov. 14, 2017 /CNW/ - MedReleaf Corp. (TSX:LEAF) ("MedReleaf" or the "Company"), Canada's first and only ISO 9001 and ICH-GMP certified producer of medical cannabis, today announced that its Australian joint venture partner, Indica Industries Pty Ltd. (t/a "MedReleaf Australia"), has been granted a licence from the Australian Government Office of Drug Control ("ODC") for the cultivation and production of medical cannabis. The licence to undertake authorized cannabis activities commences on November 10, 2018 in order to allow time to complete infrastructure development of the facility.
"We're focused on international expansion in countries with a federal legal framework for cannabis, and Australia is an attractive market with a population about two thirds the size of Canada and a focus on medicinal applications," said Neil Closner, CEO of MedReleaf. "Providing our expertise to local partners allows us to participate in a greater number of international markets in a capital efficient way."
MedReleaf, through its wholly-owned subsidiary, MedReleaf Holdings (Australia) Ltd., has a 10% equity interest in MedReleaf Australia and, subject to the execution of additional documentation, it is contemplated that the Company would become entitled to receive certain royalties on the gross revenues of MedReleaf Australia, as well as additional equity in the future.
Legislation to enable the cultivation of cannabis for medicinal and related research purposes was passed by the Australian Parliament on February 29, 2016, with amendments related to licensed domestic cultivation coming into effect on October 30, 2016. Inclusive of the licence issued to MedReleaf Australia, the ODC has issued eleven medical cannabis licences for cultivation and production since November 2016.
"We're excited about being among the early producers to be granted a medical cannabis licence," said Russell Harding, CEO of MedReleaf Australia. "We look forward to working with MedReleaf to bring its level of scientific and operational rigor to the medical cannabis industry in Australia."
About MedReleaf Corp.
MedReleaf sets The Medical Grade Standard™ for cannabis in Canada and around the world. The first and only ICH-GMP and ISO 9001 certified cannabis producer in North America, MedReleaf is a R&D-driven company dedicated to patient care, scientific innovation, research and advancing the understanding of the therapeutic benefits of cannabis. Sourced from around the world and carefully cultivated in one of two state of the art facilities in Ontario, MedReleaf delivers a variety of premium products to patients seeking safe, consistent and effective medical cannabis.
For more information on MedReleaf, its products, research and how the company is helping patients #livefree, please visit MedReleaf.com or follow @medreleaf
Forward Looking Statements
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, which can be identified by the use of forward-looking terminology such as "expect", "likely", "may", "will", "should", "intend", "anticipate", "potential", "proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may", "would" or "will" happen, or by discussions of strategy. Forward-looking information include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact, including statements with respect to the build-out of a production facility by MedReleaf Australia, the Company's focus on international expansion in countries with a legal framework for cannabis, and the Company's relationship with MedReleaf Australia. The forward-looking information contained in this press release are based upon MedReleaf's current internal expectations, estimates, projections, assumptions and beliefs and views of future events which management believes to be reasonable in the circumstances, including expectations and assumptions regarding the Company's ability to expand internationally through MedReleaf Australia, and expectations and assumptions regarding the regulatory environment in Australia. Forward-looking information are subject to known and unknown risks and uncertainties, including risks and uncertainties which could cause actual events or results to differ materially from those described in any forward‑looking information, including risks and uncertainties relating to general economic conditions, changes in the regulatory and legal environments relating to cannabis, competition, counterparty risk, as well as those risks and uncertainties and other cautionary statements contained in MedReleaf's Annual Information Form dated June 27, 2017, which is available electronically at www.sedar.com. Any forward-looking information contained herein speaks only as of the date on which it is given and, except as required by law, MedReleaf does not undertake any obligation to update or revise any forward‑looking information, whether as a result of new information, future events or otherwise.