Toronto, Ontario, June 18, 2018 - James E. Wagner Cultivation Corporation (TSX VENTURE:JWCA) ("JWC" or the "Company") is pleased to announce that it has entered into a letter of intent ("LOI") with Medipharm Labs Inc. ("MediPharm") pursuant to which the parties have agreed to negotiate a potential commercial arrangement whereby MediPharm will initiate a cannabis concentrate program for JWC that will involve JWC providing MediPharm with dried cannabis to use for the purposes of creating cannabis oil (the "Program").
Upon execution of a definitive agreement in respect of the Program and subject to the bulk transfer approval of Health Canada, JWC will ship dried cannabis to MediPharm which MediPharm will use to produce cannabis oil. The parties intend that under the Program, MediPharm may provide cannabis oil to JWC or to other licensed producers of medical cannabis at the direction of JWC. Alternatively, JWC may release the cannabis extract for use by MediPharm. The Program will be established at no capital cost to JWC; however, MediPharm will charge JWC processing fees for the cannabis oil produced, and the revenue earned on sales of cannabis oil by MediPharm will be shared between MediPharm and JWC.
The parties intend that the term of the Program will be three years. This will provide JWC with a strategy for providing cannabis oil to patients.
Nathan Woodworth, JWC’s President and Chief Executive Officer, said: "JWC is a licensed producer of medical cannabis located in Kitchener, Ontario. By exclusively employing our proprietary aeroponic platform, GrowthStorm™, we are able to grow clean and consistent medical cannabis in our state of the art facility. JWC grew from starting as a family business, founded on family values. Since our inception as a group of patients and growers under the MMAR, we have remained focused on providing the best possible patient experience. We are very excited to enter into a relationship with MediPharm, which will allow us to provide our patients with convenient, effective edible cannabis oil products. The relationship with MediPharm will facilitate and expedite our ability to obtain the necessary licence amendments which will enable us to produce and then sell extract products derived from our quality-controlled plant material. We strongly believe that this is an important option for many patients, as an alternative method of dosing and ingestion. In its relationship with MediPharm, JWC will be able to provide a line of cannabis oils which will perfectly complement the other products offered by the Company."
The implementation of the Program is subject to the completion of each parties’ due diligence and the negotiation and execution of a definitive agreement in respect of the Program.
About MediPharm Labs Inc.
MediPharm is a licensed producer of medical cannabis under the Access to Cannabis for Medical Purposes Regulations. MediPharm is Canada’s first Licensed Producer approved solely for cannabis oil production. MediPharm anticipates receiving its license to sell cannabis oil in fall 2018. MediPharm produces a number of cannabis concentrate products approved by Health Canada, including purified cannabinoids, sublingual drops, diluted cannabis oil, soft gel capsules, formulated vape cartridges and tabs and pills.
For additional information about MediPharm, please see the company’s website: medipharmlabs.com
JWC is a premier cannabis business that focuses on growing its cannabis aeroponically, using cutting edge cannabis technologies and growing practices. Although many methods are used to produce cannabis under the Access to Cannabis for Medical Purposes Regulations ("ACMPR"), it is important to note that these methods will often result in a variety of different outcomes. Through its various proprietary technologies involved in all stages of the growing process, JWC prides itself on continuing to provide patients with clean, consistent medical cannabis products of high quality.
Notice regarding forward-looking statements:
This press release contains forward-looking statements about JWC and its business which may include, but is not limited to, risk, uncertainties and other factors that may cause actual events to differ materially from current expectations. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting JWC. For example, there can be no guarantee that JWC will enter into a definitive agreement in respect of the Program, or that such definitive agreement will be negotiated on the same terms as set out in the LOI. Other risk factors include risks regarding the cannabis industry, economic factors, the equity markets generally and risks associated with growth and competition. Although JWC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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