Canadian cannabinoid company MediPharm Labs Corp. is halting the previously announced sale of its Napanee, Ontario, facility to Kensana Health.
The company terminated the $5.5 million sale of its ABcann Medicinals subsidiary because Ontario-based Kensana Health did not meet some of the terms and conditions within the required timelines, according to a Monday news release.
The facility is expected to continue operating without disruption, Barrie, Ontario-headquartered MediPharm said.
Under terms of the initial agreement, MediPharm will keep some of the nonrefundable deposits paid by Kensana.
“Growing our profitable revenue was a critical element of our success in 2024,” MediPharm Labs CEO David Pidduck said in a statement.
“We will continue to use the Napanee facility to capitalize on international opportunities in 2025.”
As part of the deal, MediPharm and Kensana were supposed to form a strategic partnership in which Kensana would supply products and services to support MediPharm’s international brands and customer base.
MediPharm wanted to sell the ABcann facility to “focus on streamlining its operations and maximizing value for shareholders,” according to a release issued when the deal was announced in December.
The sale was expected to complement MediPharm’s “strong cash position and combined with the materially debt-free balance sheet, allow the Company to invest in future growth opportunities,” the release noted.
