West Australia-based AusCann Group Holdings has entered a scheme implementation deed (SID) with CannPal Animal Therapeutics to acquire 100% issued share capital of the animal health company.
AusCann said the combination of the two businesses was an attractive proposition for shareholders, strengthening its leadership and providing the opportunity to utilise research, technology and knowledge across human and animal health.
It is expected the transaction will create a larger and complementary product offering across both human and animal health, with two products already in the market and two more expected to be launched within 12 months.
Other benefits include increased research and development (R&D) capabilities and an expanded geographic footprint.
Auscann chair Max Johnston said: “The combined business is expected to have the financial resources and technical expertise to accelerate the growth, commercialisation and market penetration of its pipeline products in Australia and offshore.”
CannPal chair Geoff Starr said: “There is a great logic to combining Cannpal Animal Therapeutics with AusCann Group Holdings, with the new business having enhanced potential for new and stronger commercial pathways.”
The scheme is subject to Cannpal receiving the mandatory shareholder and court approvals.