Premier Health Closes Acquisition of Two Cash Flow Positive Pharmacies in Metro Vancouver
VANCOUVER, British Columbia, July 19, 2019 – Premier Health Group Inc. (CSE: PHGI, OTCQB: PHGRF, Frankfurt: 6PH) (the “Company” or “Premier Health”), a Company focused on developing innovative approaches that combine human skill-based expertise with emerging technologies for the healthcare industry, is pleased to announce that further to its previous news releases dated January 24, 2019 and April 2, 2019, it has closed the acquisition of two Metro Vancouver based pharmacies (the “Pharmacies”).
The Pharmacies were cash flow positive and had a combined annual revenue of approximately $6 million for the fiscal year ended August 31, 2018*. The associated cost of goods sold and operating expenses incurred by the pharmacies was approximately $5.44 million on a combined basis. Key management of the Pharmacies has over 20 years’ of collective experience and will continue running operations.
“Closing the acquisitions of these two profitable pharmacies is instrumental to our telemedicine app as it will enable team-based practices and concentrate services around a patients’ specific healthcare needs. We are pleased to be working with an experienced pharmacy team to help Premier improve fulfillment and provide the most accessible care to our rapidly growing patient base,” said Dr. Essam Hamza, CEO of Premier Health. “In addition, we now have the potential to open a new medical or cannabis clinic within one of the Pharmacy’s existing space.”
Under the terms of the Share Purchase Agreement, in consideration for the purchase of all the outstanding shares of the Pharmacies from the vendors, Premier Health will assume the net liabilities of the Pharmacies estimated at approximately $2.5 million and pay to the vendors up to $4,057,733 as follows: (i) up to $1,312,733 in cash, (ii) 3,432,384 common shares of the Company (the “Consideration Shares”) at a deemed price of $0.7269 per share, and (iii) 343,926 performance share units of the Company (the “Performance Shares”). Each Performance Share shall vest into one (1) common share of the Company without any payment on April 30, 2020 if certain earnings milestones for the pharmacies are met. Each Consideration Share will be subject to certain contractual restrictions on trading for a period of twenty-two (22) months from the date of issuance.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD”
Chief Executive Officer
About Premier Health
Premier Health is a Canadian company that is strategically poised to take advantage of business opportunities in the global health care industry. We are focused on innovative health care approaches that combine human skill-based expertise with emerging technologies. Premier Health, in conjunction with its subsidiary Cloud Practice, a cloud-based SAAS Electronic Medical Records software company, is developing proprietary technology to deliver quality healthcare through the combination of connected primary care clinics with telemedicine and artificial intelligence (AI). We currently have a combined ecosystem of 290 clinics, over 3000 licensed practitioners and almost 3 million registered patients. The Premier Health team has deep clinical, operational and financial expertise and a passion for improving healthcare for all patients.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
FOR ADDITIONAL INFORMATION CONTACT:
Premier Health Group Inc.
Renmark Financial Communications Inc.
Bettina Filippone: firstname.lastname@example.org
Tel: (406) 644-2020 or (514) 939-3989