Epsilon Healthcare has revealed it will withdraw from all cultivation-related operations, redirecting its attention toward growing its pharmaceutical and clinic business units.
Via its Canndeo subsidiary, Epsilon has held a lease on a medicinal cannabis cultivation site and plant-processing facility in Bundaberg, Queensland since 2017. That lease has now been mutually wound up, with the termination taking effect from August 15.
Epsilon CEO Peter Giannopoulos said the firm's "immediate strategic focus" will be to expand and develop its Epsilon Pharma and Epsilon Clinics subsidiaries "to better support the current and emerging needs of B2B clients and patients seeking clinical care and support through enhanced access to plant-based therapies".
He added that the company was looking to make the most of its manufacturing and extraction facility in Southport "to meet the needs of an increasing number of clients seeking manufacturing services in line with GMP within highly regulated and controlled TGA-licensed premises".
"The exit from the cultivation site will also free up capital to invest in healthcare verticals which will be complementary to the current and future direction of the healthcare focused organisation," he said.
The decision follows Epsilon's rebranding of its THC Pharma and Tetra Health divisions earlier this month, a move aimed at consolidating operations under a unified brand.
Giannopoulos joined the ASX-listed company in May.
