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Cannabis producer THC Global (ASX: THC) will further diversify its business with a $3 million acquisition of clinic operator Tetra Health.
Post-acquisition THC will gain access to Tetra's network of medical practitioners comprising more than 600 referring physicians, 30 prescribing physicians and a national network of dispensing pharmacies.
Tetra currently has more than 1,100 active Australian patients and a list of 10,000 prospective patients
According to THC Global CEO Ken Charteris, the acquisition will enable the company to gain direct access to new patients for its medicinal cannabis.
"Through this acquisition, we will be able to rapidly increase the number of Australian patients that can access cannabis, including our own high-quality low patient cost products," says Charteris.
"Going forward, we will look to further broaden the current network and potentially expand across the Tasman and other regions. THC Global believes this acquisition will deliver exceptional value to our shareholders."
The acquisition is worth $3 million in total, comprising $2.5 million in THC shares issued to the current owners of Tetra Health - Canadian pharmaceutical company Meta Growth Corp (TSXV: META) and Barcoo Holdings - plus $500,000 in cash paid post-acquisition.
According to THC, Tetra will remain a product-agnostic solution for patients and medical professionals seeking to access cannabis in Australia.
The company's doctors currently prescribe products from other ASX-listed cannabis companies including Althea (ASX: AGH), MGC Pharma (ASX: MXC), Little Green Pharma (ASX: LGP), and Medlab (ASX: MDC).
THC intends to introduce its Canndeo line of medicine for prescription by Tetra physicians once it becomes available in the coming weeks.
"Through the acquisition of Tetra, THC is advancing the industry across the chain, enabling the Company to increase accessibility and reduce costs of medicinal cannabis medicines to Australian patients, by cutting out intermediary markups and handling costs," says THC.
"Post-acquisition, Tetra and THC Global will pursue a number of expansion opportunities, including expanding its current network of partnerships with private hospitals and medical centres in Australia, and exploring the potential to launch in new regions including New Zealand."
Shares in THC Global are up 10 per cent to $0.33 per share at 3:54PM AEST.
Bod confirms first UK prescriptions
In other news from the medicinal cannabis space Bod Australia (ASX: BDA) has confirmed progress in the United Kingdom market, receiving its first prescriptions from UK patients.
The company expects to supply its MediCabilis product to a minimum of 1,000 patients participating in Project 21, Europe's largest medicinal cannabis registry.
The registry intends on reaching 20,000 patients suffering from conditions including chronic pain, Multiple Sclerosis, Post-Traumatic Stress Disorder, Tourette's Syndrome, Anxiety disorders and issues arising from substance abuse.
Project 21 aims to generate a large body of evidence and data to demonstrate the efficacy of medicinal cannabis which will be used to lobby policy makers in an effort to make medicinal cannabis more affordable and accessible.
"Participation in the registry opens another sales avenue for MediCabilis and will provide the Company with exposure to a large number of physicians, patients and clinics across the country," says Bod CEO Jo Patterson.
"We are confident that the UK will be an important growth market for MediCabilis and these initial patients provide the beginning of what will become a scalable revenue base for the Company."
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