MediPharm Labs Breaks Free From Royalty Agreement, What It Means & What's Next
Portfolio Pulse from Jelena Martinovic
MediPharm Labs Corp. (TSX:LABS) (OTCQB:MEDIF) has ended its royalty agreement with Shelter Cannabis for the Shelter Cannabis Brands IP portfolio. The supplementary agreement will improve the product line's gross margin, allowing MediPharm to invest more in the brand. MediPharm will continue to review its product categories and selling channels to optimize margins and streamline operations. The company's shares traded 1.35% higher at $81.99 per share during the pre-market session on Wednesday.
September 20, 2023 | 1:42 pm
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POSITIVE IMPACT
MediPharm's termination of its royalty agreement with Shelter Cannabis could improve the company's gross margin, potentially leading to increased investment in the brand and higher profitability.
The termination of the royalty agreement allows MediPharm to retain more of its revenue, which could improve its gross margin. This could lead to increased investment in the brand and higher profitability, which is likely to be viewed positively by investors, potentially driving the stock price up.
CONFIDENCE 90
IMPORTANCE 80
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