ASX-listed THC Global Group has acquired the Australian Clinic Networth Tetra Health for AUD $3 million.
THC Global Group Limited (ASX:THC) is a medicinal cannabis company with a vertically-integrated "farm-to-pharma" business model. This week, THC Global made headlines after announcing that the company would be acquiring Tetra Health,
Tetra has built a robust network of medical practitioners with 600 referring and 30 prescribing physicians, in addition to having a national network of pharmacies that dispense medical marijuana products.
"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," said THC Global's CEO Ken Charteris on the acquisition.
Given THC's enormous manufacturing capacity thanks to its Southport Facility, the Tetra Health acquisition gives the company the perfect platform to distribute its low-cost cannabis products throughout Australia.
Additionally, as doctors are often seen as a large barrier to entry for medical marijuana prescriptions, THC will largely sidestep this issue upon gaining access to Tetra's distribution networks. The acquisition will see that THC Global pays Tetra $2.5 million in shares and $500,000 in cash over a six month period as well as five million unlisted options exercisable at $0.40, expiring two years after issuance.
The acquisition is believed to be completed around May 25th.
Upon completion of the deal, both THC and Tetra will look into expansion possibilities, both in Australia as well as abroad in countries like 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," Mr. Charteris remarked.
Tetra Health has an exclusive agreement with a private hospital group, which gives Tetra exposure to an addressable annual patient population in excess of 20,000.
To learn more about THC Global Group, visit the company HQ here.
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