ASX-listed 1-Page, which has cash reserves of $25 million, is set to acquire a German medicinal cannabis company in a cash-and-scrip deal.
1-Page said it would purchase HAPA Medical Group, which began operating in 2017 and supplies pharmaceutical grade THC and CBD-based products to patients through its own medical clinics.
Laws legalising the broad use of medicinal cannabis were passed in Germany in March last year.
Under the agreement, 1-Page will pay €1.3 million ($2 million) and issue 90 million shares to HAPA, giving the cannabis company a 37 per cent stake in 1-Page.
Shares in 1-Page were flat at 16.5 cents tody, which would value the deal at about $16.8 million.
Completion of the deal is conditional, with 1-Page to complete due diligence and gain the required approvals.
HAPA founders Ricardo Pendon and Michael Sprenger will join 1-Page’s board following the acquisition.
1-Page said it planned to expand HAPA using its current capital.
“The company estimates that it will have cash at bank of approximately $23 million, and will have sufficient capital to execute its plans in relation to the growth, development and expansion of the existing HAPA business,” 1-Page said in a statement to the ASX.
The company said it has also proposed to change the name of its business to European Cannabis Corporation, and was currently in discussions with the ASX.
