MGC Pharma has signed a deal to wholly acquire the Medicinal Cannabis Clinic from Cannvalate for A$1.4m in shares plus cash.

The Medicinal Cannabis Clinic provides a range of solutions enabling patients to access affordable and experienced cannabinoid prescribing doctors.

In the last 12 months, it has facilitated prescriptions to more than 3,700 patients through the Special Access Scheme via a network of 2,480 referring doctors and 60 pharmacies throughout Australia.

The acquisition significantly expands MGC Pharma’s distribution network in the Australian market.

A new company will be incorporated to hold all Medicinal Cannabis Clinic assets, with staff retained to ensure clinical independence as well as continuity of operations and product.

Under the terms of the agreement, the new company will obtain relevant state and federal licences to allow for the import and distribution of medicinal cannabis products, moving MGC Pharma’s Australian supply chain to the new company.

Total consideration is $1m in MGC Pharma Ordinary Shares (majority subject to trading restrictions) and $400,000 cash to be paid upon settlement.

MGC Pharma co-founder and managing director Roby Zomer said: “The acquisition of Medicinal Cannabis Clinics’ assets is an important part of our strategy to grow our distribution network and direct supply chain capabilities in both Australia and internationally.

“Importantly, with the acquisition of MCC’s assets, MGC Pharma will be well on the way to achieving our cashflow breakeven targets.”