Telehealth acquisition executes against strategic reset
$5.1 million investment from Australian business icon
MELBOURNE, Australia, Feb. 12, 2025 /PRNewswire/ -- Australian digital health business Vitura Health Limited (ASX:VIT) today announced the acquisition of one of Australia's leading medicinal cannabis clinic businesses, Candor Medical.
Vitura's purchase of Candor Medical for $5.9 million - including a $4 million initial cash component – will add to its well-established medicinal cannabis clinic services and add extra depth and more personalised experiences for patients.
Candor Medical provides prescription treatments, including access to medicinal cannabis, through its telehealth consultations with patients. It was established by founders Joel and Dr Lisa Beckett in 2022 and provides consultation services to around 15,000 patients, resulting in nearly $30 million in annual medication purchases via pharmacies.
The acquisition of Candor catapults Vitura into one of the country's largest medicinal cannabis clinic providers which includes its existing CDA Clinics and Cannadoc clinic businesses, and its 50% interest in the clinics formerly owned by Releaf Group, immediately expanding the consolidated consultation numbers to over 100,000 annually. This figure does not include the consultations performed by the Company's general clinic business, Doctors on Demand, which currently conducts more than 300,000 consultations annually. It also underscores Vitura's 2024 strategy reset to deliver more specialty healthcare to Australians, improved growth and financial performance.
In a vote of confidence for Vitura's direction, the Candor Medical acquisition was enabled by a $5.1 million investment from one of the nation's most iconic business leaders, Professor Khalil (Charlie) Shahin AO.
The South Australian based high-net-worth businessman has invested more than $5.1 million in Vitura, details of which were also released on the Australian Securities Exchange (ASX) this morning.
Managing Director of Peregrine Corporation, one of Australia's largest privately owned companies, Professor Shahin is well known as co-founding the company with his father Fathi (Fred) in 1984, when they purchased their first petrol station in Adelaide's Woodville Park, South Australia.
In 2023, Peregrine Corporation sold its OTR Group, including more than 170 integrated petrol stations and convenience stores, to Viva Energy for $1.15 billion.
Commenting on the acquisition of Candor Medical, Vitura's CEO, Geoff Cockerill, said he was pleased to have joined forces with Joel and Dr Lisa Beckett, two recognised leaders in the Australian medicinal cannabis clinic industry, and to have the backing of one of Australia's most successful and prominent business leaders.
"We're very excited by the opportunities unlocked by this acquisition and we see this as a great opportunity to bring together two leaders in the field, both of whom have a deep alignment on the commitment to providing patients with personalised care. It also reinforces our goal to make specialty healthcare product and services more accessible to millions of patients across Australia," Mr Cockerill said.
"The ability for us to combine the large patient base of Doctors on Demand that delivers high quality general healthcare, the personalised approach of Candor to deliver an extended patient experience of more specialised healthcare, and the deep pharmacy and distribution network will be a game changer to the Australian digital health landscape."
Vitura Chair Robert Iervasi welcomed Professor Shahin's commitment to the Company.
"Vitura is very pleased to welcome an experienced and proven business leader like Charlie Shahin as a substantial shareholder in the Company," Mr Iervasi said.
"As a major shareholder, Charlie will bring to Vitura a wealth of experience. I'm pleased that Charlie sees the potential of Vitura and his passion for the Company and industry is a vote of confidence in our recently announced strategy reset, leadership team changes and growth potential."
Outlining his reasons for investing in Vitura, Professor Shahin said "I am delighted in becoming a major shareholder in Vitura. The business is well positioned for growth, and I look forward to supporting Vitura in its growth platforms."
Vitura's digital health approach, delivered through an innovative centralised platform, offers end-to-end patient needs from telehealth to the eventual supply of prescriptions in pharmacies. The Company specialises in the sourcing and wholesale supply of specialty licensed products such as medicinal cannabis, smoking cessation and weight loss products.
Media enquiries:
Dieter Lehmann
Nominis Communications
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SOURCE Vitura Health
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