Zelira Therapeutics to acquire Health House International

Zelira Therapeutics to acquire Health House International

SYDNEY: Health House International (ASX: HHI) has entered into a binding term sheet, under which Zelira Therapeutics Limited will acquire 100% of the shares in Health House by way of a Scheme of Arrangement.

Under the Scheme, Zelira will issue shares to Health House shareholders giving Health House parties a 19.45% interest in the expanded capital of Zelira.

The proposed merger of Health House with Zelira will create a global organisation with strong medicinal cannabis product and distribution capabilities.

Zelira is a leading global biopharmaceutical development and commercialization company marketing cannabinoid-based medicines. Zelira owns a portfolio of proprietary revenue-generating products and a pipeline of candidates undergoing clinical development that are positioned to access the world’s largest and fastest-growing markets.

Zelira is focused on developing and clinically validating branded cannabinoid-based medicines for the treatment of a variety of medical conditions in its Rx business, including insomnia, autism and chronic non-cancer pain as well as offering over-the-counter (OTC) products.

Zelira is also generating revenue in Australia and Germany from its proprietary and patented Zenivol – a leading cannabinoid-based medicine for treatment of chronic insomnia.

Zelira has partnered with SprinJene Natural to develop and commercialise natural and organic oral care products under the SprinjeneCBD brand, as part of Zelira’s OTC business.

Health House Founder & Chairman David Wheeler said: “The proposed merger is a strategic vertical opportunity to increase margins and save costs given:

• Health House currently distribute Zelira’s Rx formulations in Australia and have an agreement in place to distribute the SprinjeneCBD toothpaste in the United Kingdom.

• Manufacturing to be completed in house to further improve margins for the combined groups products and providing stronger control of product life cycle.

• Zelira’s research team and Health House’s European based Kalapa Clinic will provide an opportunity to materially improve the speed at which these products can obtain clinical validation, while improving the cost of such clinical trials.

The $1.5 million short-term loan facility assist Health House with its short-term working capital requirements.”


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