09:07 AM EST, 12/17/2024 (MT Newswires) -- MediPharm Labs ( MEDIF ) on Tuesday entered into a share purchase agreement to sell all of its indirect equity interests in its unit ABcann Medicinals to Kensana Health for $5.5 million in cash.

The company said pursuant to the deal, Kensana Health will buy the license, the building, land, and equipment associated with the Napanee Facility. Current commercial agreements and activities of LABS will stay with the company.

MediPharm Labs ( MEDIF ) and Kensana Health will form a strategic partnership following the closing of the deal, where Kensana Health will supply select products and services to augment MediPharm's ( MEDIF ) international brands and to support the company's growing international customer base, the company said in a statement. The deal is expected to close by Jan. 1.

"This acquisition represents our commitment to advancing phytopharmaceutical development, specifically targeting severe medical conditions with significant unmet needs. This is a strategic move to expand our pharmaceutical manufacturing capabilities for multiple plants, and not just phytocannabinoids," said Kensana Health Chief Executive Ken Clement.

Shares of MediPharm ( MEDIF ) closed down $0.005 or 8%, to $0.06 on Monday, for a 52-week low on the Toronto Stock Exchange.