Victory Square Technologies Inc (CSE:VST) (OTCMKTS:VSQTF) said Thursday it has completed the acquisition of mobile health and wellness service provider IV Hydreight for US$1.6 million.
Hydreight provides a unique, custom-built, proprietary telemedicine service that allows users to book confidential health and wellness or medical services on the go through a mobile platform. Its business model leverages decentralized healthcare to bring quality telehealth, medical, health and wellness services to people in an efficient, scalable and cost-effective way.
Vancouver-based Victory Square said it will adopt this acquisition in its planned global VSH growth strategy for the emerging lucrative telehealth platform.
READ: Victory Square Technologies inks LOI to acquire mobile health and wellness service provider IV Hydreight
Hydreight’s proprietary technology and existing licenses in the US will allow Victory Square to access and expand upon Hydreight’s model, with an additional focus on mental health and wellness, discrete care, and other services.
The company also plans to expand the current Hydreight offerings combined with the VST Health options in existing jurisdictions across the US and in the global marketplace including Canada, Brazil, and Europe.
“This acquisition enables our combined teams to unite and prepare for critical expansion and new offerings in the current marketplace and in great new jurisdictions globally,” said Victory Square CEO Shafin Diamond Tejani in a statement.
Deal terms
Under the share purchase agreement, Victory Square will acquire Hydreight for US$1.6 million in Victory Square shares. The purchase amount of US$1.6 million will be converted into Canadian dollars at the Bank of Canada for the date of the SPA exchange rate divided by the volume-weighted average price of the Victory Square shares on the Canadian Securities Exchange for the month of January, with a floor price per Victory Square share of $0.60.
Upon closing, the Victory Square shares will be subject to a contractual escrow that stipulates 12.5% of the Victory Square shares issued to the shareholders of Hydreight will vest on each 120th day anniversary after the closing, with the first tranche vesting on the 120th day anniversary of the closing and the last tranche vesting on the 960th day anniversary of the closing.
In addition to the purchase price, the company has agreed to pay the vendor up to US$1 million in earn-out payments over a period of two years, to be paid in Victory Square shares and subject to the certain milestones.
The deal is expected to close by the end of the week.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas