Kanabo, the European medicinal cannabis company focusing on the development and distribution of cannabis-derived products for medical patients and wellness CBD consumers, has purchased The GP Service (GPS), one of the leading private telemedicine and online primary healthcare service providers in the UK.
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The deal, announced Monday, is worth £14m. Patients can, for a set price of £39.99, get an appointment with a UK registered GP within half an hour and then get a prescription sent to one of 4,200 pharmacies within an hour for £7.49.
A well as the purchase, Kanabo announced that it has successfully completed a £2.25 million fundraising via the company’s broker, Peterhouse Capital Limited.
Kanabo’s acquisition of The GP Service will facilitate the rapid growth of the existing GP digital and telemedicine business and will establish a new and fully compliant channel to market for Kanabo’s products for medical patients. Through improved access to these products, Kanabo hopes to make a substantial contribution to improving outcomes for thousands of patients in the UK and Europe.
GPS is an approved provider on the NHS digital framework for video and online consultations and is able to able to electronically deliver prescriptions to a network of 4,200 pharmacies including major high street chains and independent pharmacies.
It provides online GP video consultation services to corporate clients as an occupational health service for employers as well as pharmacies.
Kanabo, the first medicinal cannabis company to IPO on the LSE, intends to develop The GP Service platform to become one of Europe’s first digitally-led and legally compliant providers for Kanabo’s products and wellness CBD services following regulatory approval.
The use of telemedicine has tremendous benefits for patients and has already been accelerated by the COVID-19 pandemic. The global telemedicine market is forecast to grow by 23% to $14.9 billion by 2024, and the UK market for private virtual GP services is estimated to be worth approximately £1 billion.
All the Doctors contracted by The GP Service are UK registered with the General Medical Council and all pharmacies are affiliated with the services provided by the GP Service are also UK based and registered with the General Pharmaceutical Council.
Avihu Tamir, founder and CEO of Kanabo, said: “Today’s acquisition of the GP Service is part of our strategy to use M&A alongside organic growth to build a pan-European company, and to offer help to millions of consumers and medical patients for conditions including chronic pain, anxiety and central nervous system diseases.
“We are very much looking forward to working with the highly skilled team at GP Service to support the growth of their business in the rapidly growing tele-medicine market in the UK and beyond.”
Atul Devani, CEO of the GP Service added: “The GP Service was incorporated with the aim of offering patients an innovative and cost-effective solution to access primary healthcare services conveniently and efficiently. We have invested heavily in our core systems and technologies to provide patients with treatment or advice following a remote video or with a GMC Registered Doctor and have successfully built one of the leading primary care telemedicine companies in the UK. With further support and investment from Kanabo we look forward to expanding our core service to cover a range of other medical conditions and further enhance our electronic prescription offerings in the coming months across a number of territories.”
About Kanabo Group Plc
Kanabo Group Plc is creating a new standard in the medical cannabis industry to improve the well-being of millions of people around the world by providing a better alternative to the smoking of medicinal cannabis flowers. Kanabo, which was the first medicinal cannabis company to IPO on London Stock Exchange, has a focus on the distribution of cannabis-derived products for medical patients and non-THC products for CBD consumers. It has conducted extensive Research & Development to produce high-quality cannabis extract formulas, innovative medical-grade vaporizers, and various non-smoking consumption solutions. Kanabo sells a range of medical cannabis products and wellness CBD products in the Primary Markets, including its VapePod, which delivers a metered dose with every inhalation.