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Be the first with the news that moves the market- Zelira Therapeutics (ZLD) mutually agrees to terminate an acquisition deal with Health House International
- In February, the two parties announced a new contract under which Zelira would buy Health House through a scheme of arrangement to expand the market reach of its medicinal cannabis products
- Zelira attributed today’s announcement of the deal’s termination to a “substantial change in market conditions” since the scheme was first announced
- As a result of this termination, Health House is required to pay an immediate sum of $50,000 to ZLD, plus repay Zelira’s $1.5 million working capital facility loan with interest
- Zelira shares dropped one per cent to 99 cents each at 11:39 am AEST
Zelira Therapeutics (ZLD) has mutually agreed to terminate an acquisition deal with Health House International.
Zelira attributed the termination to a “substantial change in market conditions” since the scheme was first announced.
In February, the two parties announced a new contract under which Zelira would acquire 100 per cent of the shares in Health House by way of a scheme of arrangement to expand the market reach of its medicinal cannabis products.
Under the scheme, Zelira would issue shares to Health House to give Health House parties a 19.45 per cent interest in the merged business.
At the time, Zelira also agreed to chip in $1.5 million via a short term loan facility to Health House to assist with its short-term working capital requirements.
Health House Founder and Chairman David Wheeler said the proposed merger was going to be a strategic vertical opportunity to increase margins and save costs.
However, following today’s announcement, the partnership has come to an end.
As a result of this termination, Health House will pay an immediate sum of $50,000 to Zelira.
Additionally, Health House will be required to repay to Zelira the $1.5 million working capital facility loan, plus interest, within 60 days. This is pursuant to the terms of the Zelira working capital facility loan agreement.
Zelira shares dropped one per cent to 99 cents each at 11:39 am AEST.
