After going into a trading halt Tuesday, healthcare and medical cannabis company Vitura Health (ASX: VIT) emerged from it with some interesting news.
Among Vitura’s subsidiaries are CanView, Doctors on Demand (acquired in 2023), Cortexa, CDA Clinics, Cannadoc, Burleigh Heads Cannabis and Adaya. On Thursday, the firm announced its intention to add more to its portfolio – Livelihood Health Pty Ltd and its associated entities. Among those are Candor Medical.
Founded by Joel and Dr Lisa Beckett in 2022, Candor is a medicinal cannabis clinic business, providing consultation services to around 15,000 patients . According to Vitura, Candor sees nearly $30 million in annual medication purchases via pharmacies.
The purchase price for the acquisition, which is subject to standard conditions, is an aggregate of $5.9 million.
Commenting on the acquisition, Vitura CEO Geoff Cockerill said his firm sees it as a great opportunity to bring together two leaders in the field.
“Importantly, this acquisition complements our existing physical clinic business in providing patients with greater flexibility and options in how they choose to access doctor consultations”, he said.
Dr. Lisa Beckett stated:
“We’re very excited to be joining Vitura and for the opportunities that the acquisition unlocks for our growing number of patients, as well as the future financial performance of the company overall.”
The acquisition was made possible by a subscription agreement with AFO, which is associated with South Australian investor Professor Khalil (Charlie) Shahin AO. Professor Khalil is best known as Managing Director of Peregrine Corporation, which was behind petrol and convenience store chain OTR Group. OTR Group was sold to Viva Energy for $1.15 billion in 2023.
“As a major shareholder of the Company, Charlie will bring to Vitura a wealth of experience,” said Vitura Chair, Robert Iervasi. “Charlie’s investment is an important validation of the potential of Vitura and our Strategy Reset, and the importance of providing patients with options in how they access healthcare in Australia.”
Professor Shahin said the business is well positioned for growth and he looks forward to supporting Vitura in its growth platforms.
Vitura will be funding the $4.0 million initial cash component of the acquisition from the share placement with AFO.
Vitura Health was formerly known as Cronos Australia Limited until a rename/rebrand in 2023. This followed its merger with CDA Health Pty Ltd., to reflects the vision, values and aspirations of the merged entity.
