1-Page buys German cannabis group

02/02/2018 - 12:01

Bookmark

Save articles for future reference.

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 buys German cannabis group
Laws legalising the broad use of medicinal cannabis were passed in Germany in March last year.

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.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options