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Health House International (ASX:HHI) set to acquire CanPharma

Health Care
ASX:HHI
11 May 2021 11:20 (AEST)

Health House International (HHI) is set to expand into Europe’s largest medicinal cannabis market through the acquisition of German medicinal cannabis company CanPharma.  

Subject to approval from Health House shareholders and all conditions of sale being met, Health House will acquire 100 per cent of CanPharma through an all-scrip transaction.

The company says this acquisition will allow the consolidated group to fully exploit one of the world’s fastest growing pharmaceutical sectors.

With revenue streams from multiple countries including Australia, the United Kingdom and Germany, Health House will be able to provide shareholders with leverage to grow the global medicinal cannabis sector.

CanPharma holds the highest level of pharmaceutical licences from German regulators allowing it to import, manufacture and distribute cannabinoid-based products, both in flower and oil extract form.

Additionally, CanPharma owns Kalpa Clinic, the first medicinal cannabis consultancy in Europe. Kalapa provides specialist advice to health care professionals and patients on the use of cannabis-based medicines for treating a range of conditions.

CanPharma currently imports and distributes third-party dried flower into Germany, as well as a number of CanPharma-branded products. Health House says CanPharma is ideally positioned to access the continued growth in patient numbers throughout Germany.

“CanPharma is a quality business with a highly respected team of entrepreneurs and industry specialists – the opportunity to engage with CanPharma and to ultimately agree terms to acquire the business is a very significant event for the newly listed Health House and is entirely consistent with its stated ambitions to be a globally significant distributor of medicinal cannabis product,” said Health House Chairman, David Wheeler.

As part of the acquisition, CanPharma founder Dr Henrik Sprengel will remain CEO of CarPharma and will be appointed as an executive director of Health House. CanPharma CFO David Attwood will be appointed Group CEO of Health House, taking responsibility for the combined group’s activities.

Health House International shares are up 5.88 per cent, trading at 18 cents at 10:30 am AEST.


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