AusCann acquires CannPal
MinterEllison has advised AusCann on the acquisition of CannPal Animal Therapeutics Limited.
Firm: MinterEllison (AusCann).
Deal: MinterEllison has advised AusCann Group Holdings Ltd (AusCann) on its all scrip acquisition of CannPal Animal Therapeutics Limited (CannPal).
Value: $5 million.
Key players: MinterEllison partner Bart Oude-Vrielink led the transaction.
Kidder Williams acted as financial adviser to AusCann.
Deal significance: The acquisition will expand AusCann’s market while maintaining its focus and expertise in cannabinoid therapeutics.
AusCann has entered into a scheme implementation deed with CannPal, where AusCann will acquire 100 per cent of the issued share capital in CannPal under a scheme of arrangement. AusCann will own 100 per cent of CannPal shares on implementation of the scheme and CannPal shareholders will receive 1.3 AusCann shares for every 1 CannPal share.
MinterEllison advised AusCann on all aspects of the approach, structuring, due diligence and negotiation of the scheme implementation deed.
“We are pleased to have assisted AusCann in this merger within a challenging environment, where both listed companies were affected by the market volatility affecting organisations around the globe,” said Mr Oude-Vrielink.
“The acquisition provides a positive outcome for AusCann, where it can expand its own market while maintaining its focus and expertise in cannabinoid therapeutics. It also provides them with scope to develop new therapeutic products with the potential to generate new product and licensing revenues.
“During a period of time where healthcare is such an important focus for our society, we’re delighted to support AusCann in their mission to provide greater medical treatment options for the Australian community.”