Empower Clinics Inc has announced the proposed acquisition of 2873847 Ontario Inc. (Thornhill Clinics) and its four operational medical clinics in Thornhill, Ontario.
Thornhill Clinics employs over 15 general practitioners across four clinics, and currently holds 200,000 patient files.
The existing practice offers full-service family medicine consultations and services, including general assessment, referrals, acute illness or injury treatment, and much more.
READ: Empower Clinics opens its NEXT ‘The Medi-Collective’ clinic in Ontario
Following a definitive agreement, Empower said it will incorporate the existing clinic operations into The Medi-Collective (TMC) brand as well as the unit’s telemedicine operation, teledermatology, other specialty services, and pharmaceutical partnerships.
"We're very excited to continue our clinic expansion in Southern Ontario," said Empower CEO Steven McAuley in a statement.
"Thornhill Clinic's existing service capabilities and 200,000 patient roster will catalyze TMC's community reach and deliver accretive revenues following a definitive agreement. We continue to execute our growth strategy according to our medium and long-term plans across the company. I'm excited for Empower's ability to improve access to integrative healthcare across Canada in the coming months."
The company said the Medi-Collective is on track for more openings into the first quarter of 2022. Its 37-clinic pipeline includes:
- Operational - 4
- In Development & Construction - 8
- In Due Diligence - 21
- Acquisition - 4
The company said it has five additional openings scheduled before the end of 4Q 2021. TMC is also projecting ongoing openings into 1Q 2022 and throughout the year. Advanced discussions continue for additional locations across various provinces, including but not limited to Alberta, British Columbia, and New Brunswick.
Under the proposed terms at closing, Empower said it will pay an aggregate cash payment to the vendor of $1.6 million, with $800,000 to be paid to the vendor at the closing and $800,000 (Post-Closing Payment) to be held back by the purchaser pending satisfaction of performance milestones to be set out in the definitive agreement. The Post-Closing Payment, if earned, will be released 12 months following the closing.
The company also will issue common shares valued at $1.3 million at a deemed price per share equal to the 10-day volume-weighted average closing price on the Canadian Securities Exchange (CSE) for the period on the last business day prior to the closing.
Closing will be conditional upon successful due diligence by both parties participating in good faith on or before mid-December.
Primary care services at the TMC clinics include:
- Family physicians
- Walk-in physicians
- Telemedicine and virtual care
- Chiropractic
- Physiotherapy
- Registered Massage Therapy
- Chiropody
- Acupuncturists
- Osteopaths
- Nutritionists
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