OneLife Botanicals, the joint venture partner of Wellnex Life, has closed its acquisition of the Australian subsidiary of Canadian company MediPharm Labs.
The deal, first announced in July, covers the MediPharm Labs Australia facility, its specialised licences, operational expertise, and the Australian and New Zealand customers currently supplied from that site.
Wellnex said the acquisition by its joint venture partner, valued at a minimum of A$6.9 million, will position the company to enter the Special Access Scheme market, with products expected to be available before the end of 2022.
Further details have been sought from Wellnex.
In an ASX update, the company also confirmed it had successfully completed a $2 million share placement plan (SPP), with proceeds intended to "progress the JV with OneLife Botanicals". All directors took part in the SPP.
The two companies are pursuing registration of a schedule 3 over-the-counter product, with approval targeted by the end of 2023.
Should the TGA grant approval, Wellnex will receive a 4% stake in OneLife.
Wellnex chief executive George Karafotias said: "We're pleased to report our joint venture partner OneLife has now acquired MediPharm's state-of-the-art medicinal cannabis facilities in Australia.
"Importantly, this acquisition puts Wellnex a step closer to obtaining approval for over-the-counter medicinal cannabis products under Schedule 3 classification. This opens up a new, untapped market for medicinal cannabis products that don't require a prescription, and has considerable public demand."
Wellnex shares were trading at $0.084c, up 3.7% on the day.
