LONDON: Voyager Life Plc, a prominent health and wellness group known for its high-quality Cannabidiol (CBD) products, has announced the cessation of merger discussions with Northern Leaf plc. The proposed merger, which had been publicized on March 13, 2024, was anticipated to create a pioneering vertically integrated cannabis entity in the British Isles.

The crux of the decision to terminate talks lies in the inability to secure the necessary funds in alignment with Northern Leaf’s financial strategy. Despite Voyager’s initial engagement with Northern Leaf in late 2023, when the latter was facing significant financial constraints, and subsequent fundraising efforts, the required capital could not be amassed within the stipulated timeframe.

Voyager’s directors had deemed the merger a lucrative opportunity, considering Northern Leaf’s substantial investment of approximately £33 million in its Jersey facility. The initial merger consideration was pegged at around £1 million, based on Voyager’s share price at the time.

Post-announcement, both companies embarked on a fundraising campaign that initially saw a positive response, with confirmed orders from investors. However, the Easter holiday period and delayed investor commitments impeded the process, leading to the inevitable termination of the merger plan.

Voyager remains optimistic about the sector’s consolidation prospects and intends to pursue other potential partnerships. The company’s recent acquisition of Amphora Health Limited aligns with this strategy.

Furthermore, Voyager is exploring additional funding avenues, including grants and government support, to enhance its manufacturing division, VoyagerCann, through increased automation. This move aims to bolster production capacity and address the company’s immediate working capital needs.

Nick Tulloch, Chief Executive Officer and Founder of Voyager, said: “Needless to say, it is hugely disappointing to bring our proposed merger with Northern Leaf to an end.  As we look back over the past few months, a transaction well received by the industry and investors has been prevented by circumstances outside of our control.

“Our interest in expanding in the cannabis sector through M&A is undiminished and we continue to see numerous opportunities.  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.

“The proposed merger with Northern Leaf was always about bringing together two businesses that could be leaders in their respective halves of the cannabis industry.  Although that transaction cannot now proceed, it does not change the pace of developments that Voyager already has in place. 

Through contract manufacturing and petcare, we have built a strong position in two significant markets and we expect to continue to make progress in 2024.  This year we will also enter the CBD non-disposable vape market through our acquisition of Amphora and, with one of the largest product ranges in the UK, supported by in-house development and manufacturing, we are well placed to take advantage of opportunities in the market.”

Voyager Life Plc has acquired Amphora Health

Voyager Life has acquired a CBD extraction & manufacturing facility in Poland