Medical life science company, Medlab Clinical Limited (ASX:MDC), has signed a significant cannabis supply agreement with Canadian licenced producer of medical marijuana, Aphria Inc. (TSX VENTURE:APH)(OTCQB:APHQF). Cannabis plant species, yields and a novel extraction process have been established in collaboration between Medlab and Aphria, allowing Aphria to produce for Medlab in a large scale supply.

The combination of the two most known cannabis extracts required by Medlab, CBD (cannabidiol) and THC (tetrahydrocannabinol), produces in excess of 70 per cent active ingredient for both compounds, making it one of the most potent compounds known.

Aphria will grow and prepare the high yield cannabis for Medlab in Canada and Medlab will complete the manufacturing at a licensed Schedule 8 (S8) TGA approved facility, which Medlab expects will be in Australia.

At this facility, the cannabis product will be combined with Medlab's patented medicine delivery system, NanoCelle™, which enables sub-micron sized particles to...