Merger Plans between Medicinal Cannabis Firm Northern Leaf and CBD Brand Voyager Fall Through

The anticipated merger between Jersey-based medicinal cannabis producer Northern Leaf and Scottish CBD firm Voyager has fallen through, dealing a blow to both companies’ plans for expansion in the burgeoning cannabis market. The collapse of the agreement, first announced last month, was confirmed by Voyager’s founder and CEO, Nick Tulloch, who expressed deep disappointment over the outcome.

Northern Leaf had previously warned its shareholders that failure to finalize the merger could force the company to cease trading immediately. The collapse comes after Northern Leaf’s unsuccessful attempt to float on the London Stock Exchange in April 2023, which aimed to secure a valuation of around £60 million but failed to attract sufficient interest.

In a statement to the Aquis Stock Exchange, Voyager cited financing challenges as the primary reason for terminating the merger. Despite raising £1.75 million through a rights issue in December 2023 and sharing forecasts for 2024 with Voyager in January 2024, Northern Leaf’s financing needs could not be met within the required timeframe.

Voyager saw the proposed merger as a significant opportunity to establish the first vertically integrated cannabis company in the British Isles, combining pharmaceutical and health and wellness operations. However, despite initial investor interest, the fundraising efforts faced delays, leading to the termination of the merger.

Founded in 2020 and based in Perth, Scotland, Voyager specializes in CBD and hemp seed oil products. The collapse of the merger deals a setback to its expansion plans in the cannabis sector. Had the merger proceeded, the combined group would have been valued at £5 million.

Despite the setback, Voyager remains committed to its growth strategy in the cannabis industry. The company plans to enter the CBD non-disposable vape market through the acquisition of Amphora and continues to explore opportunities for expansion. While the failed merger is a setback, Voyager aims to leverage its existing strengths and market position to capitalize on emerging opportunities in the cannabis sector.

The collapse of the Northern Leaf-Voyager merger underscores the challenges and uncertainties facing companies in the medicinal cannabis industry. Despite setbacks, industry players like Voyager remain resilient and determined to navigate the evolving landscape of the cannabis market.