Green light for Rua

GLOBAL RISE: Rua Bioscience chief executive Rob Mitchell says its purchase of medicinal company Zalm will give it 'the potential to create a powerful global brand faster'. Picture supplied

Rua Bioscience shareholders have overwhelmingly approved the purchase of medicinal cannabis company Zalm, throwing weight behind its bid to become New Zealand's premier medicinal cannabis company.

The purchase will be undertaken through the issue of 28,735,632 shares over three years to Zalm Therapeutics shareholders based on the achievement of agreed milestones.

As required by NZX Listing rules, voting was conducted by a poll, with 99.97 percent of shareholders voting to approve the $10m purchase.

Rua Bioscience chief executive Rob Mitchell said the result of yesterday's special meeting was an important moment for the company.

“We're pleased to move forward with this acquisition and seize the meaningful opportunities we anticipate for the company, our shareholders, patients and community. While there is plenty of work ahead, we expect the purchase of Zalm will be transformative for Rua.

“Between Rua's unique kaupapa, expertise and innovation and Zalm's global-scale GMP (Good Manufacturing Practice) capability and experienced distribution partners, we have the potential to create a powerful global brand faster.”

Under the deal, Rua would acquire Zalm's third-party supply contract for GMP-grade medicinal cannabis with Cann, including exclusive supply into New Zealand.

“Cann is in the final commissioning phase of one of Australasia's largest and most technologically advanced indoor growing facilities at Mildura, Victoria, which will deliver world-class and globally competitive scale and GMP capability — and will complement its existing production facility in Melbourne.”