Health House International will soon be acquired by Perth-based Zelira Therapeutics, creating a medicinal cannabis organisation with top-line products and extensive global reach.
HHI says it is upbeat about the merger, which provides plenty of upsides viewing in-house manufacturing to improve product margins immediately.
Shares will be issued to Health House investors, giving its parties a 19.45 per cent interest pending due diligence and industry-standard conditions, with CPS Capital acting as a corporate advisor.
The two companies hold an existing working relationship with multiple deals already in the bag enabling Health House to distribute Zelira products throughout Australia, New Zealand and the UK.
Zelira holds a revenue-generating product portfolio, best known for its international and industry-leading chronic insomnia treatment Zenivol.
HHI sees the merger as an excellent fit with its pre-built distribution networks throughout the globe and eyes on Germany’s massive recreational market after government promises of legislation.
The company said its acquisition would increase efficiency across the board.
“The proposed merger is a strategic vertical opportunity to increase margins and save costs given,” founder and chairman David Wheeler said.
The next steps for the HHI will be to continue developing and clinically validating its alternative medicines.
HHI’s Australian Stock Exchange-listed price is trading at 5.1c (8: 37 am UTC+ 8 hours).