OneLife Botanicals has completed acquisition of MediPharm Labs Australia, a development welcomed by OneLife JV partner Wellnex Life Limited.
In July this year, Canada-headquartered cannabinoid company MediPharm Labs Corp. announced its intention to sell MediPharm Labs Australia to Melbourne (Australia) based OneLife Botanicals. OneLife was to acquire everything associated with the Australian operation except international contracts outside of Australia and New Zealand.
A few days later, Australian health and wellness product distributor Wellnex Life Limited (ASX: WNX) announced it had entered into a joint venture with OneLife Botanicals.
Late last week, MediPharm Labs Corp. announced the sale had completed; for a value of $7.25M AUD ($6.3M CAD).
Medipharm CEO David Pidduck wished the new owners well.
“I want to personally thank our Australian team for their dedication and professionalism through the closing of this sale,” he said. “I wish them and OneLife Botanicals much success in their future business pursuits.”
Wellnex is pretty pumped about the finalising of the sale, stating it will enable Wellnex to enter the Special Access Market (SAS), with product to be available by the end of this year.
“The acquisition will also enable Wellnex to be one of the first to obtain approval for an over-the-counter medicinal cannabis product under Schedule 3 (S3) classification,” states the company.
The S3 classification for certain cannabidiol (CBD) based products will allow qualifying medicines to be available from pharmacies without a prescription. As yet, none are available but a number of companies are vying to be the first – or among them. But those products are still some way off. In Wellnex’s case, it has commenced the registration process and anticipates that will be completed by the end of next year.
“This opens up a new, untapped market for medicinal cannabis products that don’t require a prescription, and has considerable public demand,” said Wellnex Life CEO George Karafotias. “We are keenly focused on being one of the first companies to deliver a Schedule 3 product to the market.”
Among the motivations for the firm being among the first to market: if/when Wellnex obtains S3 registration, the company will be issued a 4% stake in OneLife.