The global medicinal cannabis market is set to be worth about $80 billion in 2024. In Australia alone, there is a significant demand for marijuana-based medicine to help with a range of challenges, from pain and anxiety to Parkinson’s and Arthritis. Businesses like Bioxyne (ASX: BXN) are attempting to make the most of the boom.
In keeping with that, Bioxyne is set to acquire plant-based health and wellness products manufacturer Breathe Life Sciences (BLS). BLS manufactures and commercialises products and supplements like CBD, cannabis extracts, vitamins, manuka honey and mushroom complexes. The acquisition will be worth 1,230,000,000 fully paid ordinary shares in Bioxyne Limited, at a deemed issue price of $0.03 per share, i.e. $36.9 million. These shares will be escrowed for 12 months.
On their own, Bioxyne currently trades with a $17m market cap.
Chairman of Bioxyne, Tony Ho, shared, “This combination of two complementary businesses and geographies will transform the Company and we are excited about the prospect to welcome Breathe Life Sciences into the Bioxyne family. This proposed acquisition is a natural fit for both companies, and we look forward to working together to bring even more innovative supplements and health solutions to the market. Mr Sam Watson will also be joining the board as Joint CEO and brings energy to direct sales.”
Bioxyne Limited is an Australian health and wellness products company launched in 2000. Primarily, it focuses on products like probiotics and dairy supplements that help with gut and immune health.
On the other hand, BLS is a relatively new company, launched in 2019. With the company logo being a marijuana plant leaf, BLS is not BS-ing about what it does. It sells you medicinal drugs. The company operates in Australia, the UK, Japan, and Europe (France, Germany, Spain, Switzerland, Czech Republic) with four accredited manufacturing facilities across three continents.
The acquisition will bring together two direct sales companies in the food supplement, health and wellness industry. Breathe Life Sciences develops plant-based products including CBD based therapies, while Bioxyne manufactures probiotics and dairy and immune-based supplements. Breathe Life Sciences is the owner and manufacturer of the health brand, Dr Watson, and Bioxyne is the owner of the proprietary probiotic, Lactobacillus fermentum PCC.
As a consequence of the acquisition, Bioxyne will get to tap into the growing medicinal drugs market, while Breathe Life Sciences will get access to resources to further innovate and grow marijuana-based products.
CEO of Breathe Life Sciences, Sam Watson, said, “We are thrilled with the opportunity to join forces with Bioxyne. This proposed acquisition will allow us to take our wellness products and international market presence to the next level and continue to provide our community with high-quality, effective solutions for their health and wellbeing.”
The completion of this agreement is contingent on shareholder approval. As per the announcement, a shareholders’ meeting is expected to be held in or around mid-February 2023 to discuss the same.
Alinda is a Business Reporter for The Sentiment
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