WeedMD, a producer and distributor of medical-grade cannabis, has announced the acquisition of Starseed Holdings, a company providing cannabis to patients with medical insurance.
The acquisition is valued at approximately $78 million, and Starseed’s strategic investor – the Labourers’ Pension Fund of Central and Eastern Canada – will make a concurrent $25 million equity investment directly into WeedMD.
Starseed recently launched a partnership with
Canada’s largest construction union, the Laborers’ International Union of North
America, to provide medical cannabis as a fully-covered drug benefit for its
more than 100,000 members and retirees in addition to their respective
WeedMD press release states the transaction bolsters the its leadership position in the medical cannabis market through Starseed’s distribution and patient channels, provides important growth capital, and fortifies WeedMD’s balance sheet.
“We believe that there are three pillars to
long-term success in the cannabis space: quality production, unique
distribution, and a strong balance sheet,” said Keith Merker, CEO of WeedMD.
“This acquisition allows WeedMD to increase its
distribution capabilities, maximize margins and access growth capital through a
Angelo Tsebelis, president of Starseed, added:
“At Starseed, we have focused on building a unique sales platform that
largely mirrors the pharmacy distribution model.
“Simply put, by making cannabis a paid benefit we
have removed many of the barriers to mass market uptake of medical cannabis.
“Coupled with WeedMD’s high-quality cultivation
assets and processing capabilities, we are well-positioned for accelerated