Joint venture: Three medical cannabis firms propose roll-up into one united firm

Helius Health chairman Guy Haddleton said that the industry has long needed a reset, and it begins with patients.

“By bringing together the full value chain – prescribing, manufacturing and dispensing – we’re building a seamless, patient-first ecosystem that delivers on the promise of medicinal cannabis in New Zealand,” Haddleton said.

“This merger creates the critical mass to change that, driving down costs, accelerating delivery and ensuring more people can access trusted, clinician-led care.”

Haddleton said too many Kiwis were still turning to the black market as a result of legal options falling out of reach.

He warned that the lack of guardrails compromises safety with no guarantees of product efficacy, formulations or quality.

The Medicinal Cannabis Scheme was launched five years ago, but the industry believes it has been constrained by fragmentation, limited access and affordability challenges.

For Haddleton and Dr Waseem Alzaher, Cannabis Clinic’s chief executive, the ability to educate the public and healthcare providers on what treatments are available has been the biggest barrier.

“There are restrictions and there is stigma and we’ve got into trouble for sharing those stories, which is what happens because it’s seen as a form of advertising, but it’s actually educational and it’s just clarity,” Alzaher said.

“This is part of the opportunity that exists to really get that out there.”

Haddleton expanded, saying part of the challenge has been addressing stigma to medicinal cannabis from not only patients but doctors, despite a swathe of research showing its benefits.

His experience has shown several patients turning their lives around following the use of medicinal cannabis, and he wants others to be able to access it more easily.

“There’s one big benefit here of our combination, because we can now provide the access. We can provide same day-product availability on an online dispensary as such, and it’s separate from the clinic, so there’s no merger there.”

“We can now bring the product price down. Our pricing as an industry is now at or below black market and nobody knows that.

“That is one of the best secrets out there.”

Haddleton couldn’t speculate on how much market share the black market has, but said it is alive and thriving and the medical community needs to come together to present a better alternative.

“As doctors, as clinicians, as healthcare professionals, it’s really important that we also come together and collaborate, have a unified voice, because that’s very, very powerful.”

Alzaher said the potential merger would put the clinic in a better position to extend its impact and help more people.

“It comes down to the fact that GPs are simply not educated and do not have the time and the mental bandwidth to deal with the intricacies of prescribing cannabis, and alongside that, stigma. For doctors who want to learn, we are here to support that and use our wealth of experience.”

“The intention here is to help as many people as we can and help make medicinal cannabis an accessible option for all Kiwis. By bringing the best of all of us together, we can make that happen faster.”

Up in smoke

The industry has been facing a number of structural and capital challenges over the past few years.

On Monday, it was revealed that collapsed cannabis firm Greenfern owes creditors $1.2 million, with additional claims expected.

Debt funders Emdex pushed the company into receivership in February, following confirmation that the previously NZX-traded company could not meet its payment obligations.

At the time, Emdex was owed $221,000 and a second debt funder, CFS Debt Fund LP, was owed $743,000.

The business, which formed back in 2018, went public on the NZX in 2021 and never emerged from its growth stage to turn a profit; it was always reliant on debt and equity financing to operate.

Meanwhile, Cannasouth, which went into voluntary administration in March last year, was placed into receivership last week.

From June 2024 until last Friday, it operated under a deed of arrangement with its creditors. However, funders who provided an injection of debt under the deed have now pulled the pin on the business.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.