Kanabo Group acquires GP Service in £13.5m deal
(KNB ) has acquired The GP Service Limited, a private primary care telemedicine provider, in an all-share deal for a total consideration of £13.5 million at a price of 12.65p which represents around 22% of the issued share capital of the Company.
The Israeli-based medicinal cannabis firm said it expects the acquisition to facilitate the ‘rapid growth’ of its existing digital and telemedicine business while also establishing ‘a new and fully compliant channel’ to market for the business’ products for medical patients, it explained.
‘Through improved access to these products, Kanabo Group hopes to make a substantial contribution to improving outcomes for thousands of patients in the UK and Europe,’ it said.
The GP Service, which offers the services of online doctors to help diagnose and treat common conditions using its internet-based consultation platform, is already an approved provider on the UK’s NHS digital framework for video and on-line medical consultations.
The system allows patients to consult with qualified doctors via online assessment questionnaires and through secure video chat. As part of the process, doctors are able to provide prescriptions, as well as write referral letters for hospital care, and fit notes.
Patients can, for a set price of £39.99, get an appointment with a UK registered GP within half an hour and then get a prescription sent to one of 4,200 pharmacies within an hour for £7.49.
Kanabo said the service is able to electronically deliver prescriptions to this network of 4,200 pharmacies which includes major high street chains as well as independent pharmacies.
Kanabo intends to develop a platform to become one of Europe’s first digitally led and legally compliant providers for its products and wellness CBD services following regulatory approval.
All the Doctors contracted by The GP Service are UK registered with the General Medical Council (“GMC”), and all pharmacies affiliated with the services provided by the GP Service are also UK based and registered with the General Pharmaceutical Council, Kanabo noted.
In addition to developing its existing telemedicine business, Kanabo outlined to investors that it will further develop the GP Service digital technology, physician network and patient community to leverage the platform for the sale of its own product and service offerings.
Commenting on the acquisition, Avihu Tamir, founder and CEO of Kanabo, said: “Today’s acquisition of the GP Service is part of our strategy to use M&A alongside organic growth to build a pan-European company, offering help to medical patients and consumers for conditions including chronic pain, anxiety and central nervous system diseases.”
Also commenting on the news, Atul Devani, Chief Executive Office of the GP Service said:
“We have invested heavily in our core systems and technologies to provide patients with treatment or advice following a remote video or with a GMC Registered Doctor and have successfully built one of the leading primary care telemedicine companies in the UK.”
He added: “With further support and investment from Kanabo we look forward to expanding our core service to cover a range of other medical conditions and further enhance our electronic prescription offerings in the coming months across a number of territories.”
Today, the pan-European medical cannabis company has also announced that it has successfully completed a £2.25 million fundraising via its broker Peterhouse Capital.
Commenting on the fundraising, Tamir said Kanabo has “a well-developed plan” to deploy the proceeds from the placing to proceed with complementary acquisitions to accelerate its stated strategy to become one of Europe’s leading ‘product to patient’ medical providers “for millions of people who suffer from a range of conditions including chronic pain, anxiety and central nervous system diseases as well as looking after their general health and wellbeing.”
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