Zelira Therapeutics Ltd (ASX:ZLD), a global leader in the research and development of clinically validated cannabinoid medicines, is pleased to announce that it has entered into a binding term sheet with Health House International Limited (ASX: HHI).
Under the proposal Zelira will acquire 100% of the shares in Health House by way of a Scheme of Arrangement to be undertaken by Health House that is subject to Health House’s shareholder and Court approval in accordance.
Under the Scheme, Zelira will issue shares to Health House giving Health House parties a 19.45% interest in the expanded Zelira.
Zelira Therapeutics Founder and Chairman Osagie Imasogie said the acquisition of Health House by Zelira will create an organisation with strong medicinal cannabis product and distribution capabilities.
Health House is an international distributor of medicinal cannabis and holds a number of strategic licenses to store, distribute, import, export and sale of controlled drugs. Health House is well positioned with early mover advantage in the UK and European medicinal cannabis markets.
Health House also has supply agreements in place with several pharmaceutical grade Good Manufacturing Practice (GMP) certified manufacturers and producers of high-quality medicinal cannabis products. It holds an EU GMP licence issued by the German authorities under the framework of the European Commission (one of the world’s leading regulatory authorities for the production and manufacturing of pharmaceutical grade medicinal products).
Additionally, Health House owns a medicinal cannabis consultancy in the EU, with online services available in six languages. Which, in addition to patient consultancy activities, provides educational training to health care professionals, and is currently supporting a non-interventional study in Germany launched by another Health House group company that considers the effect on quality of life of patients and the safety and tolerability of cannabis medication.
H&P Advisory Limited (Hannam & Partners) is acting as Zelira’s financial advisor for the proposed acquisition.
The proposed acquisition of Health House will provide Zelira with control of direct access to highly regulated European and other markets for its products,” Mr Imasogie said.
“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.
“In addition, 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 these 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.”
