Zelira Therapeutics has entered into a binding scheme implementation deed to acquire 100% of medicinal cannabis distributor Health House International.
The deal was first announced to the ASX in February, subject to due diligence.
Health House will take a 19.45% interest in Zelira, which has already provided the distributor with A$1.5 million in working capital.
The company told the ASX: “Following Zelira shareholders approving the consolidation of the company’s capital at a meeting on April 12, 2022, all consideration shares issued will be on a post-consolidation basis.”
Zelira founder and chairman Osagie Imasogie said the acquisition would give Zelira direct access to highly regulated European and other markets for its products.
He added: “This transaction will also provide Zelira with direct access to GMP manufacturing facilities in Europe that will further improve margins for our products and provide stronger control of our product life cycle.
Imasogie said it would also give the firm direct access to “high-quality, international-standard clinical trial capabilities” for its proprietary cannabinoid-based products.
“This will materially improve the speed at which our unique proprietary products can obtain clinical validation, while improving the cost of such clinical trials,” he added.
Global managing director and CEO Dr Oludare Odumosu said it would maximise the firm’s ability to develop new, clinically validated products to be marketed and distributed on a global basis.
“Post-merger, it is anticipated, Zelira’s revenue profile will be accelerated, margins will increase from the sale of Zelira’s products in markets [where] Health House is currently active, and cashflow breakeven will be brought forward,” he added.
