Canadian-listed investment group SOL Global is to acquire a 25 per cent stake in Irish medical cannabis company GreenLight Medicines in a €1.8 million deal. Under the terms of the transaction, SOL could double its shareholding in the start-up and take a significant stake in any future subsidiary.

Founded in 2014 and headquartered in Dublin, GreenLight is focused on bringing novel cannabinoid medicines to market for the treatment of conditions such as multiple sclerosis (MS), glaucoma, arthritis, epilepsy and cancer.

SOL is to acquire an initial 25 per cent stake in the biopharmaceutical company with an option to increase its shareholding to 51 per cent. In addition, the Toronto-based investment group has acquired an option to take a 75 per cent stake in a future GreenLight subsidiary that successfully obtains a cannabis cultivation licence in Ireland for an aggregate exercise price of approximately €1 million.

Since its founding, GreenLight has focused its research on some of the pharmaceutical industry’s most popular therapy areas including in anti-rheumatics, oncology, bronchodilators, and immunosuppressants.