SYDNEY, AUSTRALIA: Zelira Therapeutics Ltd (ASX:ZLD) has executed a binding scheme implementation deed to purchase 100% of Health House International Limited (ASX: HHI) via a scheme of arrangement.
Zelira believes that the addition of the Health House enterprise will create an organisation with strong medicinal hashish product and distribution capabilities.
The acquisition will see Health House events maintain 19.45% of the expanded Zelira. In addition, Zelira has already provided Health House with a $1.5 million working capital facility to help it with its working capital needs.
Following Zelira shareholders approving the consolidation of the Company’s capital at a gathering on 12 April 2022, all consideration shares issued will be on a post-consolidation basis.
This transaction would result in Zelira paying Health House shareholders a Scheme Consideration of 2,311,045 of the improved Zelira shareholding, representing 19.45% of the corporate and would result in a complete worth to Health House shareholders that’s a 20% premium to the market capitalization of Health House as of April 18, 2022.
Health House is an worldwide distributor of medicinal cannabis and holds a variety of strategic licenses to store, distribute, import, export and wholesale managed drugs. Health House is well positioned with early mover benefit within the UK and European medicinal hashish markets.
Health House additionally has provide agreements in place with a quantity of pharmaceutical grade Good Manufacturing Practice (GMP) licensed producers and producers of high-quality medicinal hashish products.
It holds, the EU GMP licence issued by the German authorities under the framework of the European Commission (one of the word’s main regulatory authorities for the manufacturing and manufacturing of pharmaceutical grade medicinal products).
Additionally, Health House owns a medicinal hashish consultancy within the EU, with on-line services available in six languages. Which, along with affected person consultancy activities, provides educational coaching to well being care professionals, and is currently undertaking a non-interventional observational study in Germany contemplating the impact on high quality of lifetime of sufferers and the security and tolerability of hashish medication.
Zelira Therapeutics Global Managing Director & CEO Oludare Odumosu said: “The proposed acquisition of Health House will maximise Zelira’s distinctive functionality to develop new clinically validated merchandise that may be marketed and distributed on a global basis. Post-merger it’s anticipated, Zelira’s income profile will be accelerated, margins will increase from the sale of Zelira’s merchandise in markets that Health House is currently active, and cashflow breakeven will be introduced forward.”
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