News & Events

MediPharm Labs sues HEXO Corp. for $9.8M of Unpaid Invoices

By Whitney Abrams | January 28, 2020

On Friday, Barrie-based MediPharm Labs Corp. issued a press release announcing that its wholly-owned subsidiary, MediPharm Labs Inc. filed a Statement of Claim in the Ontario Superior Court of Justice against an unnamed licensed producer for the payment of outstanding accounts due and owing pursuant to a private label cannabis oil sale agreement.  The total amount outstanding is $9.8 million.  

The deal was announced in mid-February, 2019.The sales agreement was for MediPharm to supply $35 million of private label purified cannabis oil concentrates to a licensed producer.  The deal was made with Newstrike Brands Inc.’s UP Cannabis, which was acquired by HEXO last year. 

Under the Agreement, UP, now HEXO, was to purchase an initial $7.66 million of cannabis oil concentrate from MediPharm, with an additional minimum purchase of $27 million over a 12 month period commencing March, 2019.  The Agreement gave HEXO an option to purchase an additional $13.5 million over the same 12 month period. 

According to the claim, HEXO has failed to fulfill its contractual obligations for the months of November 2019 – January 2020, requiring it to pay the 50% payable per invoice, each which has been delivered by MediPharm.  

HEXO, yesterday, responded publicly to the claim and indicated that it intends to “vigorously defend itself”. A copy of HEXO’s Defence to the claim has not yet been filed and/or made public.  
 


Whitney Abrams

Whitney Abrams

Whitney’s work focuses on providing regulatory advice and advocating on behalf of cannabis businesses in the North American market. She is a frequent contributor to Canada Cannabis Legal.
Turn on Javascript!


Comments (3)

  1. Jules:
    Dec 29, 2018 at 12:53 AM

    Fascinating article. Very in depth. My one question is: from where would Canada import cannabis? Are there countries currently exporting cannabis legally? Uraguay seems like the most economical source, although shipping costs could be an issue.

  2. miss lena:
    Feb 24, 2019 at 01:52 PM


    All labels will need to be plain, not appealing to children, and make no health claims. For edibles, there may be no dietary claims, and for topicals, there may be no cosmetic claims. For all of the new product classes, packaging and labelling must not contain any elements that associate the product with an alcoholic beverage, alcohol, or an alcohol brand.

  3. miss lena:
    Feb 24, 2019 at 01:52 PM

    All labels will need to be plain, not appealing to children, and make no health claims. For edibles, there may be no dietary claims, and for topicals, there may be no cosmetic claims. For all of the new product classes, packaging and labelling must not contain any elements that associate the product with an alcoholic beverage, alcohol, or an alcohol brand.






Allowed tags: <b><i><br>