Apollon Formularies makes key Jamaica acquisition that helps it fulfil its strategy
Apollon Formularies PLC (AQSE:APOL) is acquiring what it describes as a world-class research, cultivation, manufacturing and processing facility that will help it fulfil its aim of becoming a vertically integrated developer of cannabis-based treatments for cancer and pain relief.
Citiva Jamaica was started by Josh Stanley, the co-founder of Charlotte’s Web, the CBD specialist.
It is affiliated with and located in the Medical School of the University of West Indies campus.
Apollon says the deal provides a "clear path to large scale manufacturing of high-quality medical grade, full and broad-spectrum oils" for cancer, chronic pain and inflammation.
Importantly, Apollon believes it can now achieve the final approval step with the Ministry of Health & Wellness in Jamaica to distribute its patented cannabis-based medical products via the island’s national pharmacy and dispensary network.
It will also look to take products to the broader Caribbean Community, the Southern African Development Community and "other targeted markets globally".
"This acquisition of Citiva Jamaica is a transformative achievement and will allow access to global markets for our trademarked and patent-protected formulations; expanded university-affiliated research and development collaborations, including formulation discovery and clinical trials and provides immediate, licensed cultivation for Apollon-specific cultivars and strains,” said Stephen Barnhill Jnr, Apollon’s Jamaican and North American chief operating officer.
The cash and paper acquisition, being done via Apollon Jamaica, the local subsidiary, has a headline value of around £355,000 at current exchange rates. The vendors will receive £50,000 in cash and just under 18.5mln Apollon shares.
The company will own 96% of the business with the University of West Indies holding the remainder. UWI can potentially increase its stake to 10%.