ASX-listed medical cannabis company MGC Pharma (ASX:MXC) has announced that the company has acquired telehealth platform Medicinal Cannabis Clinics.
Medicinal Cannabis Clinics was formerly owned by Cannavalate Pty Ltd, but will now become a part of the MGC Pharma family. Medicinal Cannabis Clinics operates a telehealth platform that provides prescriptions, advice and monitoring for medical cannabis patients all around Australia.
Since being founded in 2019, the clinics have facilitated over 4,000 consultations with over 3,700 patients. MGC Pharma acquired the clinics for $1.4 million, split into $1 million in shares and $400,000 in cash.
The acquisition of Medicinal Cannabis Clinics first started in July this year when the two companies signed transition documents and a binding term sheet. The chief medical officer of Cannavalate, Dr. Gal Wong, will continue to operate the clinics for the next two years to ensure there is no disruption for patients.
For MGC Pharma, the acquisition will allow the company to bring their products directly to Australian patients. This is expected to reduce the company’s transport, storage and distribution costs dramatically. The acquisition also expands MGC Pharma’s supply chain, giving the company turnkey access to over 600 active pharmacy accounts.
MGC Pharma Managing Director and Co-Founder Roby Zomer believes it will greatly benefit shareholders:
The MCC acquisition enables MGC Pharma to increase the profit margin and meet our stated goal of providing high-quality cannabis medications to patients at an affordable price.
Long term, MGC Pharma believes this will provide positive results for shareholders as it will increase MGC Pharma’s profit margin.