Univo, a developer, manufacturer and supplier of medical cannabis products, today announced the acquisition of 51% of the Medipharm pharmacy in Holon, Israel. As part of the transaction, which will be financed from the company's equity at the amount of 1.69 – 2.156 million dollars (5.5-7 million NIS), the company also purchased the pharmacy's website, through which direct distribution is made to the customer homes. Since the transaction is expected to be completed by the end of the current month, it will contribute to Univo's business results as of the second quarter of 2021.
Medipharm is a pharmacy that sells medical cannabis directly to customers, including directly to the patients' homes through the website. In addition to selling cannabis products, Medipharm sells a wide range of over-the-counter medications, cosmetics, and toiletries. The pharmacy's revenues without the sale of medical cannabis products amounted to 4.8 million dollars (15.6 million NIS) in 2020, with a net profit of almost 140 thousand dollars (NIS 453 thousand). With the sale of medical cannabis products, the results for 2021 are expected to reflect a significant increase in revenue and profitability. In addition, Univo has a primary right to purchase the partners' shares in the Medipharm pharmacy in Bnei Brak. Completion of the transaction is subject to conditions precedent, inter alia, receipt of all regulatory approvals as well as third-party approvals.
Golan Bitton, Univo CEO
This acquisition serves the company's strategy of becoming an independent company with complete control over the entire production chain from growing farms through production and distribution to the delivery of medical cannabis products to patients' homes, including direct online sales through a website. The company is considering similar acquisitions in order to expand its market share.
CEO and founder of Univo, Golan Bitton: "We achieved the complete control over the value chain from pharm to the end consumer by purchasing a pharmacy and thus deepening the connection with our patients. We anticipate that the acquisition of Medipharm will enable the Company to show growth in revenue and profits and increase market share. In addition, our control over the entire value chain allows us maximum operational flexibility and price flexibility required in the cannabis market while maintaining profitability. We continue to examine additional collaborations in Israel and abroad to create added value for our shareholders".
Univo distributes its products in over 140 pharmacies, including pharmacies belonging to the Super-Pharm and BE chains, as well as private pharmacies that dispense medical cannabis. Between 2020 and 2021, the company expanded the number of pharmacies selling the company’s products. Univo continuously enhances the accessibility of its products through new contracts with new pharmacies and collects feedback on the products sold, accordingly producing GMP-certified medical cannabis products to meet the market requirements.
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