Voyager Life PLC on Monday said its proposed merger with fellow cannabis firm Northern Leaf PLC will no longer go ahead.
The Perth, Scotland-based manufacturer, supplier and retailer of cannabis health and wellness products first announced the merger with the Jersey-based pharmaceutical grade cannabis cultivator and processor last month.
The combined firm was intended to create a vertically integrated company valued at £5 million, with exposure in both the medical and over-the-counter markets for cannabis.
Since March, the two company’s have embarked on fundraising efforts to provide the working capital required for the period after the merger.
However, according to Voyager Life, the Easter holidays and slow investor response times made it clear to both companies that the necessary funds could not be raised within the targeted time frame, and so the merger was cancelled.
‘Our interest in expanding in the cannabis sector through mergers and acquisitions is undiminished, and we continue to see numerous opportunities,’ said Voyager Life Chief Executive Officer Nick Tulloch said.
‘Many companies in this space are now cash-constrained due to development costs outpacing market growth and, whilst this does create excellent value propositions, as a management team we go in fully aware that work is needed to reinvigorate or accelerate sales.’
Progress has been made elsewhere, as efforts to consolidate Voyager Life’s position continue. In March the cannabis product range expanded following the acquisition Amphora Health Ltd, and Voyager hopes to bolster sales volume after contracting Unified Retail UK Ltd to manage sales of its popular pet range on Amazon.
Voyager Life shares last traded at 4.00 pence each on Aquis Stock Exchange in London on Friday. The stock is down from 11.25p a year ago.
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