Goodbody Health Ltd (AQSE:GDBY, OTCQB:GDBYF) said it has agreed to sell its Polish CBD-related operations to Voyager Life PLC (AQSE:VOY) for £1.5mln, comprising £0.5m cash and £1mln of convertible loan notes (CLNs).
The divestment comprises the share sale of Sativa Wellness Poland and Olimax, subsidiaries that combined provide CBD extraction and manufacturing at the facility in Bilcza.
Voyager will assume full operational control of the CBD extraction and manufacturing facility on 1 January 2023.
Under the CLNs, Voyager has three years to pay the company plus annual interest at 7.5% payable quarterly with the votes having a right to convert into approximately 2.5mln Voyager shares.
Levels of CBD sales by Goodbody were insufficient justification for meeting the costs of running a full extraction plant and the level of management input, the company said.
The sale will allow funds to be directed towards its growing diagnostic and wellness business, which now represents over 90% of revenues.
In a statement, George Thomas, Goodbody’s chief executive, commented: "This transaction is great news for both Goodbody and Voyager, with each party moving closer towards their strategic goals.
“The cash Goodbody receives will be used to further both the expansion of the clinic network, investing into innovative testing technology, and into the range of available blood, genome and other diagnostic testing and minor treatment services. We look forward to exciting times ahead"