- THC Global (THC) has acquired Tetra Health, a leading Australian clinic network that provides patient access to legal medicinal cannabis
- Tetra has built an extensive network of medical practitioners and supports thousands of Australian patients
- The acquisition aligns with THC's strategy to increase patient access to medicinal cannabis, including its high-quality and low-cost products
- THC will pay $2.5 million in shares and $500,000 in cash over six months, as well as five million unlisted options exercisable at $0.40
- Once the acquisition is finalised, the companies will pursue a number of expansion opportunities, including in other regions
- Company shares are up 6.67 per cent and are trading for 32 cents each
THC Global Group (THC) has acquired Tetra Health, a leading Australian clinic network that facilitates patient access to legal medicinal cannabis.
Tetra gives recommendations on a diverse range of GMP certified, pharmaceutical-grade cannabis medicines available in Australia, and handles all logistics from supplier to pharmacy to patient.
Tetra has built an extensive network of medical practitioners with 600 referring and 30 prescribing physicians, as well as a national network of dispensing pharmacies. Additionally, it has over 10,000 prospective patients and supports over 1100 active Australian patients.
"Through this acquisition, we will be able to rapidly increase the number of Australian patients can access cannabis, including our own high-quality low patient cost products," THC Global CEO Ken Charteris said.
The acquisition aligns with THC Global's strategy to increase Australian patients' accessibility to legal medicinal cannabis products.
THC aims to simplify the process of doctors consultations and Therapeutic Goods Administration (TGA) approvals, as well as supplying its high quality, low-cost medicinal cannabis.
Tetra primarily generates revenue from patient consultations and, once the acquisition is complete, it'll be operating at cash flow breakeven. However, the company can expect profits throughout the year as patient numbers increase.
Under the acquisition terms, THC Global will acquire Metra Holdings, which is Tetra's sole shareholder, from the vendors, Meta Growth Corp and Barcoo Holdings who own 30 and 70 per cent respectively.
THC Global will pay $2.5 million in shares and $500,000 in cash which will be paid to the vendors over a six month period as well as five million unlisted options exercisable at $0.40, expiring two years after issue.
The completion of the acquisition is expected to take place on or around May 25 and the consideration will be payable in three stages.
Acquiring Tetra allows THC Global to increase accessibility and reduce costs to the patient by cutting out intermediary markups and handling costs.
Beneficially, Tetra holds an exclusive agreement with an Australian private hospital group, which provides access to Tetra’s medical cannabis treatment support and education services. This has an addressable annual population of over 20,000 patients.
Once the acquisition is finalised, the companies will pursue a number of expansion opportunities. These include expanding current partnerships with private hospitals and medical centres in Australia and exploring the potential to launch in new regions, such as New Zealand.
"Going forward, we will look to further broaden the current network and potentially expand across the Tasman and other regions. THC Global believes this acquisition will deliver exceptional value to our shareholders," Ken added.
Additionally, THC Global has secured the services of all staff from senior management through to nursing and business support.
The company believes this will ensure the quality of Tetra's offering and relationships are maintained and will provide THC with an active patient cohort as it enhances the scale of the business.
Company shares are up 6.67 per cent and are trading for 32 cents each at 12:20 pm AEST.