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Highlights:
- Strategic Sale: Mendell Helium sells its plant-based health and wellness business to Orsus Therapeutics, retaining a 28% stake.
- Helium Focus: Mendell shifts its business direction towards helium assets in North America.
- Future Growth: Orsus plans to expand operations and develop a global health and wellness facility, benefitting both companies’ shareholders.
Mendell Helium Plc has entered into an agreement to sell its legacy plant-based health and wellness business, Voyager, to Orsus Therapeutics. The paper deal allows Mendell to retain a significant shareholding of 28% in Orsus, with potential future growth based on meeting revenue performance targets.
This agreement marks a pivotal moment for Mendell as it shifts its focus towards helium assets in North America, with Orsus taking over three wholly-owned subsidiaries: VoyagerCann Limited, Ampora Health Limited, and Voyager Life Limited.
The transaction includes Mendell receiving 9 million new Orsus shares, priced at 5p each, along with 6 million share warrants, offering the potential for further increasing the company's stake in Orsus.
Transition to a New Business Focus
The sale of the plant-based health and wellness business aligns with Mendell Helium’s relaunch and strategic repositioning. The company has made a deliberate shift to focus on helium exploration and development in North America, capitalizing on the growing demand for helium in various industries. CEO Nick Tulloch emphasized that this sale will allow Mendell to concentrate fully on its new business direction, while shareholders will still benefit from the potential growth of the health and wellness sector through their retained stake in Orsus.
Expansion and Future Growth for Orsus
Orsus Therapeutics, the acquiring company, plans to expand the operations of Mendell’s former subsidiaries. Orsus chair, Dr. Adi Zuloff-Shani, highlighted the company's intention to develop a world-class facility in Perth, Scotland, to serve global health and wellness brands. The merger of Voyager’s expertise with Orsus' capabilities is expected to enhance Orsus’ market position, particularly in the areas of white-label manufacturing and third-party products.
Long-Term Benefits for Shareholders
Mendell shareholders stand to benefit not only from the company’s strategic pivot to helium but also from the future growth of Orsus' operations. The company plans to distribute the shares and warrants it receives from Orsus to its shareholders, providing them with interests in both helium and the expanded health and wellness business.
