All cash deal includes two operating locations and plans for
eight additional locations
Jack Nathan Medical Corp. (TSXV: JNH) (“Jack Nathan
Health” “JNH” or the “Company”) announced the acquisition of Redeem
MediSpas (“MediSpas”), two profitable locations, inside JNH medical
walk-in clinics at Walmart in Maple and Brampton, Ontario.
The acquisition is immediately accretive and highly
complementary to JNH’s already well-established network of health
clinics located in 76 Walmart locations across Canada where
qualified Medical Practitioners use a multi-disciplinary approach
to provide seamless, patient-first healthcare.
Financial Highlights:
- Two MediSpa locations generating an annual consolidated revenue
run rate of approximately $500,000 and accretive with adjusted
consolidated EBITDA of over 25% (1)
- Purchase price of $535,000 including an earn-out of $200,000
for the opening of eight new clinics ($25,000 per new clinic
opening) within 12-18 months. The balance paid out over 60 days
from the reopening of existing two locations.
Redeem MediSpa offers a complete range of both surgical and
non-surgical treatments for facial and body rejuvenation and
aesthetics, including treatments for medical conditions such as
migraines, laser therapy, anti-aging, face, and body skin
tightening, PRP therapies, joint pain treatments and hair loss to
name a few. Consultations are offered both in-person and online to
provide patients with the ability to connect in a way that works
best for them and makes their life easier.
The acquisition provides JNH Medical Practitioners, including
Nurse Practitioners, with an expanded suite of ancillary
professional grade treatments to offer patients and help them Live
Their Best Life. The deal provides JNH with increased growth
potential as it strongly aligns with the Company’s mission to offer
patients an integrated approach to health and wellness and access
to multiple services all at one convenient location.
“This transaction is in lock-step with Jack Nathan Health’s
mission to provide patients with accessible, convenient and quality
healthcare by expanding the range of services and treatment options
available to both practitioners and patients,” said George Barakat.
CEO & Chairman of Jack Nathan Health. “Bringing MediSpa under
the Jack Nathan Health banner will drive both immediate increased
revenue and a growth trajectory, as we work first to integrate
these two locations and then open additional locations in the
coming months. We extend a warm welcome to the existing MediSpa
team as we incorporate them into Jack Nathan Health.”
During the recent provincial lockdowns for Covid19 at MediSpas
two locations in Southern Ontario they have continued to engage
patients remotely and sell service packages. This activity has
amounted to approximately $74,000 in unearned revenue (pre-sold
MediSpa packages) and almost $79,000 in cash on the consolidated
balance sheets of the acquired locations, demonstrating the strong
and ongoing patient relationships and demand for its services.
With the ability to offer immediate access to high quality
services that go beyond simple aesthetics and address medical
conditions, Jack Nathan Health MediSpa embodies the Company’s
circle of care ethos. In just of many examples, JNH practitioners
will be now able to refer patients to Jack Nathan Health MediSpa
for Botox, a safe and effective treatment for medical conditions
including migraines, hair loss and excessive sweating. In addition,
the Circle of Healthcare™ Jack Nathan Health MediSpa will also be
launching its own exclusive line of skin care products available at
the clinics and online.
The integration of MediSpa will be led by Chief Medical Officer
Dr. Glenn Copeland, who brings deep expertise in building and
leading multidisciplinary healthcare operations to this
initiative.
“The acquisition of MediSpa provides a unique opportunity to
further entrench Jack Nathan Health as a full-service provider of
quality services, deepening our ability to close the circle of care
for each patient by attending to their unique needs,” said Dr.
Glenn Copeland, Chief Medical officer of Jack Nathan Health. “I
look forward to driving this integration forward as we expand our
range of services, including the expansion of our digital footprint
through the addition of an e-commerce platform and retail product
offerings.”
(1) Based on unaudited 2019 fiscal Results
About Jack Nathan Medical
Corp.
Jack Nathan Medical Corp., operating as Jack Nathan Health®, is
one of Canada’s largest health care networks. Jack Nathan Health is
an innovative health care company that is improving access for
millions of patients by co-locating physician and ancillary medical
services conveniently located inside Walmart® stores.
Jack Nathan Health provides an exceptional level of patient
care, made possible through patient-centric physicians, a variety
of medical services, technology, and programs, designed to put
patients first. Our mission is to provide everyone access to the
finest quality retail medical centres, with both in-clinic
physicians and digital telemedicine, so you and your loved ones can
“Live Your Best Life”.
Jack Nathan Health was established in 2006 and continues to
expand its international footprint, delivering exceptional,
state-of-the-art, turn-key medical centres in 76 Walmart locations
across Canada including British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, and Quebec, as well as 11 locations in
Mexico.
For more information, visit www.jacknathanhealth.com or
www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
Certain statements contained in this press release constitute
"forward-looking information" as such term is defined in applicable
Canadian securities legislation. The words "may", "would", "could",
"should", "potential", "will", "seek", "intend", "plan",
"anticipate", "believe", "estimate", "expect" and similar
expressions as they relate to Jack Nathan are intended to identify
forward-looking information. All statements other than statements
of historical fact may be forward-looking information. Such
statements reflect the Company's current views and intentions with
respect to future events, and current information available to
them, and are subject to certain risks, uncertainties, and
assumptions Many factors could cause the actual results,
performance or achievements that may be expressed or implied by
such forward-looking information to vary from those described
herein should one or more of these risks or uncertainties
materialize. Such factors include but are not limited to changes in
economic conditions or financial markets; increases in costs;
litigation; legislative and other judicial, regulatory, political
and competitive developments; the economic and business impact of
COVID-19 and operational difficulties. This list is not exhaustive
of the factors that may affect forward-looking information. These
and other factors should be considered carefully, and readers
should not place undue reliance on such forward-looking
information. Should any factor affect the Company in an unexpected
manner, or should assumptions underlying the forward-looking
information prove incorrect, the actual results or events may
differ materially from the results or events predicted. Any such
forward-looking information is expressly qualified in its entirety
by this cautionary statement. Moreover, the Company does not assume
responsibility for the accuracy or completeness of such
forward-looking information. The forward-looking information
included in this press release is made as of the date of this press
release and the Company undertakes no obligation to publicly update
or revise any forward-looking information, other than as required
by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210218005389/en/
IR:
Prit Singh, Thesis Capital psingh@thesiscapital.ca David
Berman, CFO, david.berman@jacknathanhealth.com
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