New Zealand cannabis companies Cannasouth and Eqalis have unveiled a plan to merge, with both firms saying the deal would lead to improved outcomes for patients.
The proposed 50:50 merger would bring together the two companies' intellectual property, technology, research and development, innovation, manufacturing, sales, and prescribing capabilities.
Cannasouth CEO Mark Lucas would retain his position following the merger, while Eqalis CEO Greg Misson would take on the role of chief innovation officer.
Lucas said the transaction would build a more resilient business, offering diversified income streams, higher margins, and access to a broader capital pool to support the combined entity's ability to compete on a global scale.
He added: "Both Cannasouth and Eqalis share the same values when it comes to delivering positive health outcomes to patients. Through collaboration, we can speed up the advancement of technology to bring medicines to market faster.
"Together, [we] will have greater ability to lead and shape the New Zealand industry and reduce costs to patients."
Misson said the two companies would conduct joint capital raising activities targeting approximately NZ$9 million "to accelerate growth and the advancement of technologies which will bring costs down for patients".
According to the terms of the agreement, Cannasouth would acquire 100% of Eqalis shares, which are valued at $48.4 million, with an equivalent value of shares to be issued to Eqalis shareholders at 33 cents each.
