Chatham, Ontario-(September 27, 2018) – AgMedica Bioscience Inc. (“AGMEDICA” or the “Company”), a licensed producer of medicinal cannabis, is pleased to announce the signing of an exclusive strategic investment and cooperation agreement (the “Agreement”) with MedC Biopharma Corp. (“MEDC”), a company focused on developing and commercializing pharma-grade solutions for cannabis-related intellectual property (“IP”). As partners under the Agreement, AGMEDICA and MEDC plan to jointly develop cannabis-derived products and formulations focused on specific clinical targets in oncology, inflammation and psychological disorders.
AGMEDICA and MEDC will leverage the exclusive licensing agreements that MEDC has with Israel’s Agricultural Research Organization (“ARO”) in specific therapeutic areas. After a decade of research, ARO holds one of the world’s largest IP repositories in pharmaceutical cannabis research. AGMEDICA and MEDC will focus their experienced management and scientific teams in Canada and Israel to accelerate the development of therapeutic products for human and veterinary use. This partnership represents a significant milestone for AGMEDICA as it seeks to investigate and develop clinically-validated cannabis-derived medicines that provide substantiated health and wellness benefits.
Under the terms of the Agreement, AGMEDICA has taken a US$2 million equity position in MEDC, which represents approximately 9% of the current shares outstanding, with an option to significantly increase this position to US$5 million, which would bring AGMEDICA’s total position in MEDC to 20%. The agreement also provides AGMEDICA with the exclusive rights to commercialize therapeutics developed by MEDC in Canada and the right of first refusal for global commercialization outside of Israel.
“We are very pleased with our investment and strategic partnership with MEDC, which represent a strong base for extending the range of our pharma-cannabis products and enabling us to deliver higher quality results with a shorter time to market,” said Dr. Trevor Henry, CEO of AGMEDICA. “This Agreement enables AGMEDICA and MEDC to take a leadership role in the development of medicines that can confirm the therapeutic value of cannabis and cannabis-derived products while also meeting the stringent thresholds of essential clinical data required to ascertain appropriate dosing.”
About AgMedica Bioscience Inc.
As a licensed producer of medicinal cannabis, AGMEDICA is dedicated to becoming a global leader in the development and commercialization of cannabis and cannabis-derived products to support the health and wellness of our clients. We aspire to drive the evolution of the cannabis industry by focussing investment on the development and commercialization of differentiated products in the medicinal, health & wellness and pharmaceutical sectors. The Company’s established Riverview Cultivation Facility is located in Chatham, Ontario, and Phase I of our first innovative multi-tier cultivation facility is currently in production with a total annual capacity of 6,000 kg of medical-grade cannabis. Construction on Phase II of the Riverview Cultivation Facility is well under way, with completion and start-up expected in Q1 2019 which will bring total annual capacity up to 26,500 kg.
About MedC BiopharmaCorporation
MEDC has exclusive licensing agreements with the State of Israel’s Cannabis Research Laboratory at ARO Volcani, headed by Professor Hinanit Koltai, for the development of formulated medications based on active pharmaceutical ingredients present in Cannabis. MEDC’s capabilities expand into the breadth of the Israeli biopharma industry, including cooperation with companies such as Nextar Chemipharma Ltd, Nextage Ltd, and PathoLogica Ltd. MEDC plans to enter clinical trials for its first product, a treatment for CTCL (a form of skin cancer), by the end of 2018.
For media or other inquiries, please contact:AgMedica Bioscience Inc.
Dr. Trevor Henry, CEO
MedC Biopharma Corp.
Avi Drori, Managing Director
This press release contains forward-looking information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. These risks and uncertainties include, but are not limited to, the availability of further financing, consumer interest in its products, competition, regulation, operational and technological risks, and anticipated and unanticipated costs and delays. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.