THC Global enhances Australian medicinal cannabis strategy with Tetra Health acquisition, shares higher

THC Global Group Ltd (ASX:THC) has acquired Tetra Health, a leading clinic network in Australia that facilitates access to legal medicinal cannabis medicines to Australian patients.

Tetras network of medical practitioners comprises more than 600 referring physicians, 30 prescribing physicians and a national network of dispensing pharmacies.

This network has in excess of 1,100 active Australian patients and more than 10,000 prospective patients within its current database.

Increased patient access[hhmc]

THC Global CEO Ken Charteris said: “We are very pleased to have acquired Tetra Health. Through this acquisition, we will be able to rapidly increase the number of Australian patients can access cannabis, including our own high-quality low patient cost products.”

The companys shares were as much as 13% higher in early trade to 34 cents and closed at 33 cents.

Tetra has developed a proprietary patient engagement and monitoring solution enabling:

• Secure patient onboarding;
• Automation of Special Approval Scheme and Therapeutic Goods Administration applications;
• Better patient management and ongoing monitoring through Tetras specialist nurses;
• Follow-up physician consultations; and
• Unique, valuable patient data accumulation for medicines producers.

The majority of Tetra patients attend physician consultations using a web-based telehealth platform, however, Tetra also processes patients through its growing prescribing physician network.

Revenue is generated primarily from patient consultation fees and from the supply of de-identified data and evidence generated from patient management.

Through its physician network and digital health platform, Tetra collects valuable real-world evidence generated during the patient onboarding and management process.

Data highly sought after[hhmc]

This data is highly sought after by producers of medicines as it can be used to enable data-driven product decisions and actionable treatment insights to assist in clinical trials or observational study designs that advance the safety and efficacy of medical cannabis in Australia.

Tetra has a number of global medicinal cannabis producers signed to agreements to access this data on their own products.

Charteris said: “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.”

Share sale agreement[hhmc]

Total consideration for the acquisition is $2.5 million in THC shares and $500,000 in cash to be paid to vendors over six months as well as 5 million unlisted options exercisable at 40 cents expiring two years after issue.

In line with a share sale agreement, completion of the acquisition is expected to occur on or around Monday, May 25, 2020.

If the vendors exercise their unlisted options, the company will receive a further $2 million in cash from the vendors.

Increasing accessibility[hhmc]

Tetra and THC Global are well equipped to rapidly increase the number of Australian patients using legal medicinal cannabis medicines, by increasing accessibility through simplifying the process of doctors consultations and TGA approvals, as well as supplying the companys high-quality, low patient cost medicinal cannabis medicines.

Tetra generates revenue primarily from patient consultation fees and from the supply of de-identified data and evidence generated from patient management.

On acquisition, Tetra will be operating at cash flow breakeven, with an expectation of near-term profitability as patient numbers increase through 2020.

Following the acquisition, Tetra will remain a product-agnostic solution for patients and medical professionals accessing medicinal cannabis under the Australian regulatory scheme.

Tetras doctors prescribe products produced by a range of companies and will introduce the THCs Canndeo medicines as they become available for prescriptiRead More – Source

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