Ananda Developments PLC (AQSE:ANA) has agreed to acquire MRX Global and its subsidiary, MRX Medical, for £2.02mln in a deal that will give the company access to proprietary cannabis medicines.
MRX has created a formula for treatments, the first of which, MRX1, will be used in two phase II trials investigating the effectiveness of cannabidiol in chemotherapy-induced peripheral neuropathy and patients with endometriosis.
The studies have already received £1.55mln in external grant funding and will be carried out by leading researchers at the University of Edinburgh.
In addition, Ananda has raised £326,200 through a share subscription and will issue new stock as part of a loan note conversion.
Ananda chief executive, Melissa Sturgess, said the acquisition of MRX would provide the evidence UK regulators require for cannabis-based medicines to be prescribed on the NHS.
"UK regulators and prescribers have made it clear that evidence for cannabis-based medicines is required to enable them to be prescribed on the NHS," Sturgess told investors.
"We believe that the acquisition of MRX gives Ananda the opportunity to provide that evidence. MRX also has the potential to deliver near-term revenues for Ananda, through the sale of MRX’s formulations, which are ready for launch as unlicensed CBPMs [cannabis-based products for medicinal use].
“Our ambition, over time, is to manufacture MRX’s oils from flower grown at our own facility in Lincolnshire and we continue work to make that happen."
The vendors are Charles Morgan, Ananda’s chairman, Melissa Sturgess, its chief executive, Dr Inbar Pomeranchik, a non-executive of the company, as well as Jeremy Sturgess-Smith and Professor Clive Page.
Subject to the completion of the acquisition, Professor Clive Page and Jeremy Sturgess-Smith are to be appointed to the board of Ananda.