Ketamine One Capital Limited (NEO:MEDI.AQN, OTCMKTS: KONEF), a company focused on consolidating medical clinics and becoming a North American leader in mental health treatments, revealed that it has recently signed a non-binding letter of intent (LOI) to enter an arranged partnership with Illumma LLC.
With clinics located in Austin and Bee Cave, Texas, Illumma is a leading ketamine infusion practice treating individuals with mental health issues, mood disorders and chronic pain issues.
Ketamine One (NEO:MEDI.AQN) said that under the contemplated arrangement, Illumma’s two locations would be jointly supported alongside the company’s existing network of clinics across North America. The firm noted that the move would raise the profile of Ketamine One (NEO:MEDI.AQN)’s innovative mental health platform.
READ: Ketamine One brings computerized mental health assessment tool to North America through agreement with Cognetivity Neurosciences
Following the terms of the LOI, the consideration for the arrangement is estimated at around $980,000. It is proposed to be payable as $490,000 in common shares of Ketamine One and $490,000 in cash, of which $350,000 is to be allocated by Illumma toward the construction of future clinics, among other terms and conditions.
Ketamine One said the final amount shall be determined by “multiplying the total amount of 2021 audited gross revenues from treatments performed at Illumma’s existing clinics by a factor of two, and then netting that amount by a minority percentage to arrive at the consideration due by Ketamine One to Illumma.”
“The Illumma team is excited to join forces with Ketamine One as we usher in this new paradigm shift in mental health treatment and care. Through this partnership, we will not only be able to help more people heal their mental health issues like depression, anxiety and post-traumatic stress disorder, but we will also work to setting a new standard for how ketamine therapy is provided,” Illumma founder Dr Ken Adolph said in a statement.
“As the African proverb says, ‘if you want to go fast, go alone; if you want to go far, go together,’ and we believe this is just the first step in the long journey of our shared mission to help heal humanity.”
Ketamine One interim CEO Adam Deffett said the company looked forward to completing the arrangement with Illumma and “significantly growing our offering of clinics to prospective patients” in the US.
“Illumma’s ketamine infusion therapies provide important relief and offer hope to Texans who feel lost or are struggling with chronic illness and pain,” said Deffett. “Through Dr Ken Adolph’s leadership, Illumma’s two existing clinics have already contributed to the improved mental health of their patients by applying innovative ketamine infusion therapies… We expect that this arrangement will attract other partnerships or even acquisition targets and yield further expansion opportunities across the US.”
Ketamine One is a company focused on consolidating medical clinics and becoming a North American leader in mental health treatments. The recent addition of KGK Science Inc. as the company’s contract research division also places the company at the forefront of clinical research based on its 24-year history and experience in pharmaceuticals, cannabis, and emerging psychedelic medicine industries.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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