Medicinal cannabis companies merge with assistance from Thomson Geer
Thomson Geer has advised medicinal cannabis company Cronos Australia on a A$60 million cash and shares merger with CDA Health, one of Australia’s largest distributors of medicinal cannabis.
The merger will allow Cronos Australia, which is listed on the Australian Securities Exchange, and CDA Health to expand their operations in size and scale and provide a route to early profitability for the combined group.
Cronos Australia aims to become a leading health and wellness company in the Asia Pacific region through the creation and distribution of premium medical and consumer cannabinoid products and services.
The merger involved a A$5 million cash payment and the issuing of shares to CDA Health shareholders.
Thomson Geer advised Cronos Australia on all aspects of the merger, including the acquisition of shares in CDA Health, prospectus, the offer of shares to CDA shareholders and performance rights and long term incentives for key personnel.
The Thomson Geer team was led by Partner Adam Brooks, who said: “The medicinal cannabis sector in Australia has grown and matured steadily since laws were changed allowing medical practitioners to prescribe medicinal cannabis as a therapy.
“By becoming a merged group, Cronos Australia and CDA Health will be able to support more patients, doctors and pharmacists with therapies that provide relief.”
The Thomson Geer team also included Senior Associates Matt Persico and Chris Chin and Lawyer Bevan Wang.
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Thomson Geer acknowledges the Traditional Custodians of Country throughout Australia and their connections to land, sea and community. We pay our respect to their Elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.