The Australian subsidiary of Barrie, Ontario-headquartered MediPharm Labs received a government grant worth 466,577 Australian dollars ($352,000) to help fund a capacity optimization project at its cannabis extraction facility in Wonthaggi, Victoria.
The grant is part of Australia’s AU$50 million Manufacturing Modernization Fund, which offers funding to help small- and medium-sized manufacturing businesses scale up and compete internationally.
MediPharm Labs Australia Pty, the recipient of the grant, will use the funding for its Manufacturing Innovation and Capacity Optimization Project, according to the government announcement.
The project carries a total price tag of AU$1.9 million.
“Current operations have been focused on purified cannabis API development, which includes raw material extraction and cannabis oil purification. With increasing number of customers both domestically and internationally MediPharm Labs needs to increase its throughput of finished goods manufacturing,” a spokesperson for MediPharm in Australia told MJBizDaily via email.
“On top of the current orders for finished products, MediPharm Labs is about to bring online its soft gel cap line.”
The spokesperson said MediPharm is exploring vapes and topicals produced under good manufacturing practice conditions.
“This investment helps realize these initiatives quicker.”
The Manufacturing Modernization Fund is currently closed to applications.
MediPharm took possession of 100% of its Australian subsidiary last September, increasing its stake from 80%.
The 10,000-square-foot facility received its Australian Office of Drug Control manufacturing license in May 2019, according to a regulatory filing.
Shares of MediPharm are traded on the Toronto Stock Exchange as LABS.