Australian medical cannabis company Health House International (ASX:HHI) has announced plans to buy CanPharma – a medical cannabis company based in Germany.
Over the past few months, a handful of Australian cannabis companies have chosen to bet on Germany’s medical cannabis market. Though the market is still in its budding stages, Germany’s market is the largest in Europe. By 2025, Europe’s medical cannabis market is expected to grow 52%, becoming worth roughly $3.8 billion.
While most companies have chosen to expand their product line through product partnerships with German companies, Health House International has taken a different route: buying German company CanPharma.
Health House International is set to acquire 100% of CanPharma through an all-scrip transaction, provided all conditions are met and shareholders approve the sale by July 2nd.
According to the ASX release published by Health House International, this will put the company in a strategic position to grow in Australia, the United Kingdom, and Europe.
This is a wonderful opportunity and value accretive acquisition for the Health House business, its team and shareholders. CanPharma is a quality business with a highly respected team…
CanPharma currently operates as a medical cannabis distributor in the German market. They also own Kalapa Clinic – Europe’s first medical cannabis consultancy.
However, Health House International may have also eyed CanPharma for another reason: their licenses.
CanPharma also holds the highest level of pharmaceutical licenses available, with importation, manufacturing, and distribution licenses for both cannabis flower and cannabis oils. Acquiring a business with licenses will likely give Health House International the opportunity to leap over some red tape, as applying for medical cannabis licenses is a painful process.
Provided shareholders approve it, Health House International’s CanPharma acquisition is expected to begin later this year. The acquisition will preserve CanPharma’s existing business, with the company’s founder Dr Henrik Sprengel stepping into the executive director role, while CEO David Attwood will become Group CEO of Health House.