Queensland Bauxite Limited (ASX: QBL), the company behind one of the country's fastest growing medicinal marijuana businesses (Medical Cannabis Limited (MCL)), has once again consolidated its ever growing suite of marijuana-related operations.
The Queensland-based company acquired Hemp Hulling Co (HHC) on Thursday, bringing the family-run business further into the fold of MCL.
Sebastian & Samuel Edwards are the owners and directors of HHC, of which QBL's marijuana subsidiary MCL currently owns 55 per cent.
In announcement to the ASX the company said it was proud to welcome HHC as its latest acquisition, focusing on how hard-working the family run business is.
"The business relationship between QBL/MLC and HHC and the Edwards family has developed significantly during 2018," says QBL in a statement to the ASX.
"The expertise and work ethic of the Edwards family on behalf of the development of MCL has been impressive."
"QBL prides itself on connecting dots, finding the right people to enhance its core values, who can produce profits and are motivated to continually do it better. With this new acquisition/merger QBL/MLC have connected with an entire hard-working family."
The company now hopes to be able to focus on pushing into the health foods market in Australia, worth nearly $1 billion according to some estimates.
Under HHC, the Edwards also operate a number of major players in the health foods sector. They are the founders of Organic Markets Direct (OMD), a major wholesaler of health foods and hemp seed products and Australian and international brands EM Super Foods, Australian Grown Naturals (AGN) and Black Bag.
OMD and AGN are Australia's largest exporter of chia seeds into Vietnam, Singapore, and Hong Kong - all markets MCL intends to capitalise upon.
The cannabis company says it feels now is the right time to create this large health and wellness group.
"This is a true whole-food collective of street market knowledge, corporate knowledge and experience," says QBL.
"This newly combined group has a common passion for Australian grown and selective high-end imported health foods."
The terms of the acquisition is an issue of 21,621,622 QBL shares in return for 100 per cent of the shares in T12 Holdings Pty Ltd (HHC's holding company). The acquisition is subject to shareholder approval.
Shares in QBL are currently suspended as it continues to undergo recompliance with ASX rules.
Business News Australia
Get our daily business news
Sign up to our free email news updates.