Zelira Therapeutics (ASX:ZLD), a company focused on the research and development of clinically validated cannabinoid medicines, has announced it has executed a binding scheme implementation deed under which it proposes to acquire 100 per cent of Health House.
Health House is an international distributor of medicinal cannabis and holds a number of strategic licenses to store, distribute, import, export and wholesale controlled drugs.
Zelira said it believes that the acquisition of the Health House business will create an organisation with strong medicinal cannabis product and distribution capabilities.
As set out in a previous announcement on 24 February 2022, the acquisition will see parties associated with Health House hold 19.45 per cent of the expanded Zelira.
In addition, and as also announced on 24 February, Zelira has already provided Health House with a $1.5 million working capital facility to assist it with its working capital needs.
"Following Zelira shareholders approving the consolidation of the Company’s capital at a meeting on 12 April 2022, all consideration shares issued will be on a post-consolidation basis," said the company in a statement.
Zelira Therapeutics founder and chairman Osagie Imasogie said, “The proposed acquisition of Health House will provide Zelira with control of direct access to highly regulated European and other markets for its products.
"In addition, the successful conclusion of this transaction will improve the margin to Zelira from products that will be directly sold in the markets in which Health House is currently active. 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.
“We are also pleased that this transaction will provide Zelira with control of direct access to high quality international standard clinical trial capabilities for our 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. We look forward to welcoming Health House shareholders as important members of our mutually enhanced Zelira.”