MediPharm Gains Approval for TSX Graduation

MediPharm Labs has received conditional approval to upgrade to the TSX after achieving significant revenue growth since it began trading in October 2018.

The extraction specialist currently trades under the ticker LABS on the TSXV and it plans to keep that ticker once it graduates.

LABS opened at $2.29 when it commenced trading on Oct. 4, 2018, and its price was $1.74 by the end of the year. It has been among the best performing pot stocks in 2019, increasing to $7.39 in May.

It dipped to $4.22 at the start of this week, but it has increased steadily to $4.66 at the close of trading yesterday, and the market is likely to be buoyed by the news of its conditional graduation to the TSX.

Chief executive Patrick McCutcheon said he was “thrilled” and called it “an important step” for the business.

“We have achieved significant growth and strong performance since we first began trading last October to become a top revenue-generating cannabis company in Canada,” he said.

He expects the uplisting to allow MediPharm to expand its investor base and improve the liquidity of its shares.

MediPharm is in the process of expanding the throughput of its extraction facility in Ontario to 500,000 kg per year. It can turn cannabis flower into a wide range of consumer products, and it should have a strong opportunity to grow its business when the Canadian market opens up for edibles, beverages, topicals, and other extracts later this year.

It has tied up deals with major Canadian producers like Canopy Growth and Cronos Group, and it is bolstering its presence in the budding Australian market through a partnership with AusCann.

MediPharm has just increased its weekly production rate and its sales team is busy trying to secure deals that will allow it to operate at full capacity, turn a profit, and deliver long-term value for its shareholders.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Martin Green
Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.

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