Jack Nathan Medical Corp. (CVE:JNH) (OTCQB:JNHMF) has announced the acquisition of four operational medical clinics, located inside Walmart stores in Ontario, previously owned and operated by its medical partner and Advisory Board member Dr Hamilton Jeyaraj.
The provider of primary care medical clinics located in Walmart Supercentres under the Jack Nathan Health brand, called the acquisition "a significant milestone" noting that it represents the opportunity to further entrench Jack Nathan Health as a provider of accessible healthcare for an increasing range of needs.
The company noted that the expansion represents an annualized increase of approximately 50% of current revenue and reflects the company’s plans to generate revenue growth and create shareholder value through clinic acquisitions and operations inside the Walmart footprint.
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Jack Nathan Medical noted that the acquisition price of $1,198,400 is payable $560,000 in cash and 840,000 in shares, and it sees the deal as cumulatively accretive, with annual revenues of approximately $2.8 million and adjusted EBITDA of approximately 7%, based on unaudited 2019 fiscal results and adjusted EBITDA.
The four clinics will serve as the first corporate-owned medical clinics under the company's strategic growth initiative in practice management and clinic operations. They will be developed and operated under the guidance of Dr Glenn Copeland, Jack Nathan Health’s Chief Medical Officer.
In a statement, Dr Copeland commented: “The integration of these clinics creates an opportunity to further build out our co-located and allied services and provide patients with even greater access to customized healthcare, treatment options and seamless service. It is this focus on bringing the type of on-demand healthcare that truly resonates with people and creates a positive patient experience that will drive the success of our practice management and clinic operations.”
“Joining the Jack Nathan Health family will enable these locations to provide an even greater level of integrated healthcare for patients,” added Advisory Board member Dr Jeyaraj. “The Company’s dedication to helping patients access the services they need when they need them is an ethos of one that puts people first and one that I am proud to be a part of.”
Remaining consistent with the “patient first” vision synonymous with Jack Nathan Health’s vision, the company said the acquired clinics will provide a full range of services, including telemedicine and virtual consultations that encompass the full circle of healthcare including (but not limited to):
- Primary physician and family care
- Walk-in-services
- Cardiac care and prevention
- Orthopedic and sports medicine
- Physiotherapy and chiropractic services
- Corporate and executive health services
- Medispa and more
The clinics already offer a technology backbone for online booking access, scheduling services and referrals, the company added, and under the Jack Nathan Health brand, virtual consultations will now be offered as will telemedicine options in accordance with the growing demand for online services.
Operating as Jack Nathan Health, Jack Nathan Medical Corp. is one of Canada’s largest health care networks, improving access for millions of patients by co-locating physician and ancillary medical services conveniently located inside Walmart stores.
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.
Contact the author at jon.hopkins@proactiveinvestors.com