Candor Medical Acquisition Boosts Vitura’s EBITDA Over $1 Million in H1 FY2025
Vitura Health Limited has acquired Candor Medical, a leading Australian medicinal cannabis clinic, for $5.9 million, significantly boosting its digital health platform and patient base.
- Acquisition of Candor Medical for $5.9 million
- Candor serves approximately 15,000 active patients with $30 million in annual medication sales
- Candor's FY2024 EBITDA exceeded $1 million, with H1 FY2025 EBITDA surpassing $1 million
- Deal funded via private placement to investor Professor Khalil Shahin AO
- Integration expands Vitura’s specialty clinics to over 100,000 annual consultations
Strategic Acquisition Strengthens Vitura’s Position
Vitura Health Limited (ASX: VIT) has taken a decisive step to consolidate its leadership in the Australian digital health and medicinal cannabis sectors by acquiring Candor Medical, a prominent telehealth clinic specialising in medicinal cannabis treatments. The $5.9 million deal, announced in February 2025, is set to significantly expand Vitura’s patient base and service offerings.
Candor Medical, founded in 2022 by Joel and Dr Lisa Beckett, has quickly established itself as one of Australia’s foremost medicinal cannabis clinic businesses. With around 15,000 active patients and nearly $30 million in annual medication purchases through pharmacies, Candor brings a robust revenue stream and a well-regarded clinical team of 26 doctors and nurses to Vitura’s portfolio.
Financial Upside and Funding Structure
Financially, the acquisition is compelling. Candor’s consolidated unaudited EBITDA for FY2024 exceeded $1 million, with a material increase to over $1 million in just the first half of FY2025, signalling strong growth momentum. Vitura expects this acquisition to deliver a significant uplift in earnings per share, enhancing shareholder value.
The acquisition is funded through a private placement to South Australian high-net-worth investor Professor Khalil (Charlie) Shahin AO, who has a track record of successful investments. The initial $4 million cash payment is complemented by a deferred payment of $1.9 million spread over 18 months, contingent on ongoing employment of the founders, ensuring continuity and alignment of interests.
Integration and Growth Prospects
Importantly, the acquisition integrates seamlessly with Vitura’s existing digital health ecosystem, which includes CDA Clinics, Cannadoc, and a 50% stake in clinics formerly owned by Releaf Group. This consolidation pushes Vitura’s specialty clinics’ annual consultations beyond 100,000, excluding the 300,000 consultations conducted annually by its general telehealth platform, Doctors on Demand.
Vitura’s CEO Geoff Cockerill emphasised the strategic fit, highlighting the complementary nature of Candor’s personalised medicinal cannabis services with Vitura’s broader telehealth offerings. The combined platform is poised to deliver a more centralised and flexible healthcare experience, leveraging Vitura’s Canview distribution network and expanding into specialty treatments like smoking cessation and medicated weight loss.
Leadership Continuity and Market Impact
The founders of Candor, Joel and Dr Lisa Beckett, will join Vitura’s management team, ensuring leadership continuity and operational expertise. Their roles as General Manager and Chief Medical Officer of Specialty Clinics will be pivotal in driving growth and integration.
This acquisition positions Vitura as one of Australia’s largest medicinal cannabis clinic providers, reinforcing its ambition to innovate healthcare delivery through digital platforms. The deal also underscores the growing investor confidence in the medicinal cannabis sector, particularly in telehealth-enabled service models.
Bottom Line?
Vitura’s acquisition of Candor Medical marks a pivotal expansion, setting the stage for accelerated growth in Australia’s digital medicinal cannabis market.
Questions in the middle?
- How smoothly will Candor’s operations integrate with Vitura’s existing clinics and platforms?
- What regulatory hurdles remain before the acquisition is fully completed and operational?
- How will Vitura leverage its expanded patient base to introduce new specialty and emerging treatments?
