Empower Clinics Inc (CSE:CBDT) (OTCQB:EPWCF) (FRA:8EC) is poised to acquire Momentum Health in a deal worth C$350,000, providing the company with a growing accretive business, seven clinics in the Greater Toronto area, and immediate plans to expand a winning model across Canada.
Momentum Health operates a network of medical clinics, which offer a holistic and hands-on approach. Key services include physiotherapy, chiropractic, massage therapy and traditional Chinese medicine.
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It has two standalone wellness clinics and five new co-located clinics in the Greater Toronto Area, giving Empower immediate access to over 20,000 patients.
Momentum's model is one of opening "clinics-within-clinics" and Empower plans to partner with large care facilities to provide para-medical clinics inside the primary care facility.
"It is anticipated that this immediate and rapid nationwide expansion plan will be made possible by combining the winning Momentum Health model with the financial, marketing and operational control resources already successfully deployed by Empower in building its US operations, including the successful win of a $1.2 million testing contract with a film and television studio within just 45 days of acquiring our KAI Medical Lab," Steven McAuley, CEO of Empower, told investors in a statement.
"Significant discussions are already underway with potential nationwide partners and we expect to have developments in the very near future," he added.
The acquisition also includes incentives for the two co-founders of Momentum Health - Dr Jordan Rabinowitz and Dr Aviv Tsimerman - to open a further 30 clinics across Canada.
If, within 18 months from the closing, the company, or its affiliates, have opened and have a total of ten new clinics operating in Canada, Dr Rabinowitz and Dr Tsimerman shall each be entitled to receive incentive stock options of Empower to purchase1.875 million Empower shares, vesting at various stages.
Empower will enter into employment agreements with both doctors on closing the acquisition, to lead the Canadian clinic expansion strategy, it added.
Under the terms of the deal, Empower will pay the vendors of Momentum Health C$275,000 cash at closing, including $44,648 to settle an outstanding debt of Momentum Health, while a further C$75,000 to be withheld as a holdback for adjustments, for a total cash payment of C$350,000.
Empower is an integrated healthcare company that provides body and mind wellness for patients through its clinics, with digital and telemedicine care, and world-class medical diagnostics laboratories.
Contact the author at giles@proctiveinvestors.com