Lyphe Group Signs Term Sheet to Acquire Materia
- Combined entity will immediately encompass one of the largest medical cannabis footprints in Europe
- Integrated product-to-patient supply chain includes manufacturing, import, and distribution already selling into key European markets
- Company projecting pro forma revenues of £23MM in 2023 with gross margins in excess of 50%
Lyphe Group, the UK’s largest medical cannabis company, has signed an agreement to acquire Materia, an EU GMP producer and distributor of medical cannabis across Europe (the “Transaction”).
The combined entity (the “Company”) will bring together Lyphe Group’s and Materia’s complementary capabilities of manufacturing, distribution and patient acquisition across major European markets.
This integrated product-to-patient ecosystem will enable the Company to realise immediate operational and financial synergies, including:
- Fortified supply chain for the import of low-cost, high quality product from global GACP and GMP supply partners
- Best-in-class margin profiles and expanded production capacity to supply end channels
- Established market access with control of distribution and brands in key European markets such as Germany
The Transaction will further the Company’s current leadership position in Europe. Lyphe Group currently holds an estimated 35% market share in the UK, where it has been a first mover since medical cannabis was legalised in 2018. Materia owns its own medical cannabis importer and distributor in Germany, Europe’s biggest market, and also operates an EU GMP manufacturing facility in Malta. Earlier this year, Materia’s Malta facility became the first to ever export medical cannabis from Malta to another country.
Jonathan Nadler, CEO of Lyphe Group, said: “I am thrilled to announce Lyphe Group’s agreement to acquire Materia. Having an integrated supply chain will have a massively positive effect on the industry, demonstrating our continued commitment to improving the patient experience and standards of the market.”
Nick Pateras, Managing Director of Materia, said: “Our team has spent over three years building a truly unique infrastructure in pursuit of a leadership position in the European cannabis market. After the milestone accomplishments of the last twelve months, we are looking forward to this next chapter.”
Lyphe Group and Materia will now work through the customary processes associated with the Transaction.
Concurrently, Lyphe Group has engaged Sharp Capital to raise additional capital to accelerate the achievement of key business milestones in the Company's business plan and capitalise on identified market opportunities. For more information, please contact miles@sharpca.com.
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About Lyphe Group:
Lyphe Group is the UK leader in the reliable and seamless supply of medical cannabis care and medicine. Lyphe has built a digital first patient access ecosystem that provides clinics, dispensing, import infrastructure and vital educational services to patients, doctors and the industry. Each operating company shares a central goal to pioneer patient access to safe and effective treatments while normalising cannabis into mainstream healthcare. Lyphe Group owns Dispensary Green, The Medical Cannabis Clinics and The Academy of Medical Cannabis.
About Materia:
Materia is a leading independent producer and distributor of medical cannabis across Europe. Materia has developed a robust EU GMP manufacturing and distribution ecosystem to deliver the highest quality cannabis medicine wherever there is a patient in need. This includes its EU GMP production site in Malta, the first Maltese facility to ever export commercial medical cannabis, as well as its wholly owned medical cannabis importer and distributor in Germany. Materia’s team draws upon extensive pharmaceutical experience and regulatory acumen in the pursuit of enabling global cannabis access.