Australian cannabis company Creso Pharma Limited (ASX:CPH) is looking to acquire an international pharmaceutical distributor specialising in the distribution of medicinal cannabis products.
Creso Pharma announced last week it had inked a non-binding term sheet to acquire Health House International Ltd (ASX: HHI). The acquisition is conditional on completion of satisfactory due diligence – to completed over 3 weeks – and the two parties entering into a formal Scheme Implementation Deed along with other standard conditions.
Creso Pharma CEO and Managing Director William Lay said the acquisition would provide a number of benefits for his company, including giving a significant boost to Creso’s global distribution capabilities and entry into new markets across the UK, Europe and Australia.
Health House International currently distributes medicinal cannabis products from 14 producers to pharmacies, prescribers, specialist medicinal cannabis clinics and researchers across Australasia. In the UK and Europe, HHI supplies pharmacies, hospitals, government departments and other wholesalers with medicinal cannabis and general pharmaceuticals. Health House also has a medicinal cannabis consultancy in the EU in its stable, with online services available in multiple languages.
“The proposed acquisition of Health House by Creso Pharma would create a global organization with strong medicinal cannabis production and distribution capabilities, as well as a growing revenue profile,” states Creso.
Creso Pharma was the first company to import medical cannabis into Australia and has launched products in Switzerland – anibidiol; a hemp based product for companion animals, and cannaQIX; a nutraceutical for humans.
Creso has also made its mark in Canada through the acquisition of Mernova, a medical cannabis growing operation in Nova Scotia. In the USA, Creso acquired Colorado based natural body care company, Sierra Sage Herbs last year.
Commenting on the proposed acquisition of Health House International, Mr. Lay said:
“The Company will investigate other potential opportunities including HHI’s existing EU-GMP product manufacturing capabilities and how these can further benefit Mernova, SSH and Creso Switzerland as we push to establish a presence in Europe and the UK.”
All going well, implementation of the acquisition scheme would be completed by late November this year.