Zelira Therapeutics (ASX:ZLD) - CEO and MD, Dr Oludare Odumosu
CEO and MD, Dr Oludare Odumosu
Source: Zelira Therapeutics
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  • Zelira Therapeutics (ZLD) is set to take over Health House International to expand the market reach of its medicinal cannabis products
  • Under the scheme, Zelira will issue shares to Health House parties at 19.45 per cent interest in the expanded Zelira
  • To assist Health House with its short-term working capital requirements, Zelira has agreed to provide a $1.5 million short-term loan facility to Health House, subject to conditions
  • Zelira says it hopes the acquisition will result in forming an organisation with strong medicinal cannabis product and distribution capabilities
  • Zelira Therapeutics last traded at 2.5 cents, while Health House last traded at 5.8 cents on February 23

Zelira Therapeutics (ZLD) is set to take over Health House International to expand the market reach of its medicinal cannabis products.  

Health House is an international distributor of medicinal cannabis, and holds several strategic licenses to store, import, distribute, export and sell controlled drugs.

The company has supply agreements in place with several pharmaceutical GMP-certified manufacturers and producers of high-quality medicinal cannabis products, plus owns a medicinal cannabis consultancy in Europe, with online services available in six languages.

Under the binding term sheet, Zelira will acquire 100 per cent of the shares in Health House by way of a Scheme of Arrangement to be undertaken by Health House. This is subject to Health House’s shareholder and court approval.

Under the scheme, Zelira will issue shares to Health House parties at 19.45 per cent interest in the expanded Zelira.

To assist Health House with its short-term working capital requirements, Zelira has agreed to provide a $1.5 million short-term loan facility to Health House, subject to conditions.

Zelira said it hopes the acquisition will result in the forming of an organisation with strong medicinal cannabis product and distribution capabilities.

“The proposed acquisition of Health House will maximise Zelira’s unique capability to develop new clinically validated products that can be marketed and distributed on a global basis,” said Zelira Therapeutics Global Managing Director and CEO, Oludare Odumosu.  

“Post-merger it is anticipated, Zelira’s revenue profile will be accelerated, margins will increase from the sale of Zelira’s products in markets that Health House is currently active, and cashflow breakeven will be brought forward.”

Health House Founder and Chairman, David Wheeler, said the proposed merger is a strategic vertical opportunity to increase margins and save costs. This comes given Health House already distributes Zelira’s Rx formulations in Australia and have an agreement in place to distribute the SprinjeneCBD toothpaste in the United Kingdom, plus manufacturing will be completed in house to further improve margins .

 Zelira Therapeutics last traded at 2.5 cents, while Health House last traded at 5.8 cents on February 23.

ZLD by the numbers
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