Helius Therapeutics, Green Leaf Group, and Elysian Group are seeking to combine operations under a new entity, Helius Health. The proposed merger, revealed this week, will go to a shareholder vote by the end of June.
Addressing Fragmentation in the Medicinal Cannabis Sector
Helius Therapeutics, the first in New Zealand to achieve GMP certification for medicinal cannabis, is joining forces with Green Leaf Group and Elysian Group—operators of Cannabis Clinic and CannaPlus+. The proposed merger responds to ongoing fragmentation in the sector.
“By bringing together the full value chain – prescribing, manufacturing and dispensing – we’re building a seamless, patient-first ecosystem that delivers on the promise of medicinal cannabis in New Zealand,” said Helius Health chairman Guy Haddleton.
“This merger creates the critical mass to change that, driving down costs, accelerating delivery and ensuring more people can access trusted, clinician-led care.”
Responding to Industry Challenges and Market Failures
The merger comes at a time when the medicinal cannabis sector is reeling from a series of high-profile failures. Greenfern, a publicly listed company since 2021, went into receivership in February after defaulting on more than $1.2 million in debt.
Cannasouth, another key player, followed suit last week after operating under a deed of arrangement that ultimately collapsed when funders withdrew support.
These failures have spotlighted the challenges that have plagued the industry since the launch of the Medicinal Cannabis Scheme five years ago. Fragmentation, limited patient access, high product costs, and stigma continue to hinder growth.
Haddleton noted that these systemic issues have pushed many patients towards unregulated alternatives. “Too many Kiwis were still turning to the black market as a result of legal options falling out of reach,” he said. “The lack of guardrails compromises safety with no guarantees of product efficacy, formulations or quality.”
Enhancing Affordability and Simplifying Patient Access
One of the key promises of Helius Health is to lower costs and simplify access. Haddleton emphasised that the new structure will enable faster product delivery and competitive pricing.
“There’s one big benefit here of our combination, because we can now provide the access. We can provide same day-product availability on an online dispensary as such, and it’s separate from the clinic, so there’s no merger there,” he said.
“We can now bring the product price down. Our pricing as an industry is now at or below black market and nobody knows that. That is one of the best secrets out there.”
Overcoming Educational Barriers and Stigma
Dr Waseem Alzaher, CEO of Cannabis Clinic, pointed to a lack of education among healthcare providers as a persistent challenge. “It comes down to the fact that GPs are simply not educated and do not have the time and the mental bandwidth to deal with the intricacies of prescribing cannabis, and alongside that, stigma,” he said.
He said collaboration among clinicians will be crucial to shifting perceptions. “As doctors, as clinicians, as healthcare professionals, it’s really important that we also come together and collaborate, have a unified voice, because that’s very, very powerful.”
He added that the merger could improve patient access across New Zealand. “The intention here is to help as many people as we can and help make medicinal cannabis an accessible option for all Kiwis. By bringing the best of all of us together, we can make that happen faster.”
Helius Health’s formation through merger, subject to approval, promises to integrate medicinal cannabis operations in New Zealand. The plan prioritises accessibility, efficiency, and educational efforts to support growth in a sector still seeking to meet patient and provider expectations.