Eco Equity will combine its operations with Virtual Medical International.
Eco Equity is still scaling its operation in Zimbabwe after delays caused by COVID-19, but remained resilient during the past 12 months while construction was delayed. Thanks to this acquisition, Eco Equity will continue its vision as a pioneer in Africa that produces, high-grade EU-GMP THC medical flower at its 30,000 sqft facility in Zimbabwe. Eco Equity's business model will make it the lowest cost producer, with the highest grade of product globally.
Eco Equity is not a simple cultivator of EU-GMP THC cannabis flower; it also engages in genetic research and development. This capability allows Eco Equity to develop a proprietary seed bank of desirable and effective cannabis strains. The plants will have traits that can include low water requirements, pest resistance and higher yields of rare cannabinoids such as THCV and CBG, etc., which have a higher market value than traditional THC and CBD produce.
This acquisition will accelerate Eco Equity's expansion plans. Following the successful execution of the transaction, the combined group of companies will operate under the Virtual Medical name with Eco Equity becoming a wholly-owned subsidiary headquartered in London.
The acquisition is expected to result in substantial benefits for Virtual Medical with Eco Equity's medicinal cannabis THC focused cultivation facility in its portfolio of vertically integrated companies:
Establishes Virtual Medicals THC cultivation credentials and demonstrates the 'seed-to-sale' value chain for both recreational and medicinal markets.
Provides access to pharmaceutical and clinical research entities with a high demand THC product that has as much as 5 times the value of traditional CBD products currently offered by VMI.
Opportunities for collaboration with VMI's expert medical and scientific executive management team, to align Eco Equity R&D efforts that produce rare cannabinoids which have an increased efficacy for chronic disease and provide higher returns for investors and stakeholders.
Increases Virtual Medical's reputation as a manufacturer of high-quality products on a large scale and provides access to European and global markets outside of the USA.
VMI have confirmed the appointment of Jon-Paul Doran, who was pleased to accept the role as President EMEA of the combined company. Jon-Paul, the original co-founder of Eco Equity, will continue to lead the new business after the acquisition. Jon-Paul Doran is a veteran in the financial markets who entered the cannabis industry in 2018. The combined company has a very strong board which includes Larson Elmore, who will become Chief Executive Officer, Dr. Daniel Reshef. and Dr. Aubrey Oliver.
Non-executive director positions will be held by Timothy Ambrose (Eco Equity COO), Philip Collin, Richard Collins and Michael B. Davis.
Eco Equity CEO JP Doran commented on the acquisition, saying "This acquisition really bears testament to the hard work carried out by my team. We are now in a position to assume our role as one of the most exciting and dominant cannabis cultivation companies globally. This position also rewards our loyal investors with a tremendous opportunity to see explosive growth with VMI."
"We are very excited at this next chapter and look forward to delivering a world-class vertically integrated cannabis company."
Larson Elmore, the CEO of the combined company said; "The combination of Virtual Medical and Eco Equity is a game-changer in the U.S. cannabis industry. Our goal is to create through aggressive acquisition and expansion one of the largest public cannabis companies in the US in this sector. Combining Eco Equity's low cost of production and high-quality product grown in perfect natural conditions means we have no barrier to entry on any geographical market."
The acquisition will provide a potential liquidity event for Eco Equity investors allowing them to liquidate or retain their shares and continue toward a higher growth trajectory in the combined company.