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Speaking to The Australian Financial Review, Chemist Warehouse founder Jack Gance said the deal involved Chemist Warehouse receiving equity in Cannatrek, which he believed would result in a better outcome for both companies, as well as consumers.
Under Australia’s rules, people can only access Schedule 8 (controlled drugs) and Schedule 4 (prescription only) medicinal products through a script from a doctor or specialist under the SAS-B approval system.
The deal is similar to the one signed between Chemist Warehouse and baby formula and food maker Bubs Australia in 2019, which led to Chemist Warehouse amassing a 10 per cent shareholding as various milestones were met. It also has an equity deal with buy now pay, later player Fupay.