Epsilon Healthcare has announced plans to exit all cultivation-related activities and focus on the development and expansion of its pharma and clinic businesses.
Through its Canndeo subsidiary, Epsilon has leased a medicinal cannabis cultivation site and plant-processing facility in Bundaberg, Queensland since 2017. That lease has now been mutually terminated, effective from August 15.
Epsilon CEO Peter Giannopoulos said the firm’s “immediate strategic focus” will be to expand and develop its Epsilon Pharma and Epsilon Clinics subsidiaries “to better support the current and emerging needs of B2B clients and patients seeking clinical care and support through enhanced access to plant-based therapies”.
He added the company was seeking to capitalise on its manufacturing and extraction facility in Southport “to meet the needs of an increasing number of clients seeking manufacturing services in line with GMP within highly regulated and controlled TGA-licensed premises”.
“The exit from the cultivation site will also free up capital to invest in healthcare verticals which will be complementary to the current and future direction of the healthcare focused organisation,” he said.
The move comes after Epsilon rebadged its THC Pharma and Tetra Health divisions earlier this month in a move to streamline operations under a single brand.
Giannopoulos joined the ASX-listed firm in May.