Releaf Group has signed an agreement to acquire a 51% interest in licensed cannabis manufacturer Cannoz with a further option to acquire the 49% balance.
The company said the move strengthens its vertically integrated model and distribution supply chain enabling it to process extracts and tinctures of cannabis and cannabis resin and supply its own local and international dispensary chains, as well as support its export division.
Releaf Group CEO Gary Mackenzie said it positions the company to become a globally recognised, large-scale manufacturer of medicinal cannabis product lines with a price advantage in APAC supplying internally to Releaf Dispensaries.
“This pricing advantage could see the company disrupt the end-user cost of prescriptions, making medicines more affordable”, he added.
As a combined group, Releaf has ambitions to become the leading vertically integrated cannabis provider with end distribution in the APAC region.
Director of Cannoz Rupin Aggarwal said: “It is an exciting opportunity for Cannoz to become part of a larger cannabis group and assist in the processing and delivery of quality Australian products within the Releaf Group supply chain.”
Releaf Group is planning an IPO in late 2021.