Software technology company VPCL has entered agreements to purchase leading international medicinal cannabis distribution business Health House, subject to shareholder approval.
The UK-listed company exports, imports and distributes medicinal cannabis and pharmaceutical products across Australia and the United Kingdom.
The Market Herald reports VPCL will issue more than 115 million shares to Health House vendors. Once the purchase is complete, VPCL predicts its assets will increase by around $4 million, and expects revenue to rise to $10 million.
Under the agreement, the company will change its name from VPCL to Health House International. Health House director Mike Rann will join the VPCL board, and current VCPL director Leanne Graham will retire.
If all the conditions of sale are met, the purchase will settle in February 2021 following a shareholders’ general meeting in January.
VPCL also aims to raise A$2 million through a public offer with the funds earmarked for business development, to purchase other complementary businesses, and for working capital.