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Listed medicinal cannabis player Medlab Clinical (ASX: MDC) has signed an exclusive distribution agreement with Cultech to break into the UK market.
Cultech, a premium manufacturer in the nutritional supplement industry, will distribute two of Medlab's flaghship products in the country.
One of those two products is Medlab's NanoCBD product: a cannabinoid-based product that utilises the properties of Magnesium.
Cultech will also distribute Medlab's ORSBiotic product which fits under the Australian company's nutraceutical umbrella.
"Our IP has commercial reality, and whilst we have medical and scientific validation, the real-world validation is the commercial opportunities," says Medlab CEO Dr Sean Hall.
"Medlab remains true to its IPO promise of finding good partners to provide longevity in commercial relationships. Regarding Cultech, I have worked with them for well over a decade and they are uniquely placed to expand trade into territories beyond the United Kingdom."
The deal with Cultech follows Medlab's expansion of its nutraceutical business into the US.
Under the agreement Medlab will benefit from minimal operating expenditure exposure, and provides for 20 per cent royalties ex-factory under the transfer agreement.
At the end of FY19 Medlab remains unprofitable, despite seeing its revenue rise by 46 per cent to $8.09 million.
The company recorded a loss of $8.09 million, which mirrors the results of fellow listed cannabis companies like CannPal Animal Therapeutics and AusCann Group who both reported FY19 losses.
Medlab was named the number seven top cannabis company in Australia by Business News Australia.
Shares in Medlab Clinical are up 11.67 per cent to $0.34 per share at 11.07am AEDT.
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Business News Australia
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