Empower Clinics Inc told investors it has entered into a non-binding term sheet to acquire 100% of 1814764 Ontario Limited (Sudbury Clinics), a leading healthcare group with four locations in Sudbury, Ontario and its surrounding area.
The proposed C$4.8 million deal accounts for Sudbury Clinic’s existing locations, employees and 400,000 patient files. Following a definitive agreement, the company will incorporate the existing family medicine operations into its 100%-owned The Medi-Collective (TMC) brand of clinics.
"Sudbury Clinics is an amazing asset for Empower Clinics in terms of existing employee capacity, infrastructure and patient reach,” Empower chairman and CEO Steven McAuley said in a statement.
READ: Empower Clinics acquires four operational medical clinics in Ontario
“Our national expansion strategy continues to gain momentum as we operationalize more clinics and aim towards new jurisdictions. The addition of so many patient files has us on a path to comfortably exceed 1,000,000 patient files in 2022," he added.
Sudbury Clinics recorded more than $4 million in annual revenue for 2020. Its 35 physicians offer full-service family medicine consultations and services, including, but not limited to, general assessment, referrals, acute illness or injury treatment, and much more.
Empower said the current clinic locations complement TMC's integrative model as two of the four locations are co-located with Rexall pharmacies.TMC will offer its hallmark family telemedicine operation and other specialist services, including dermatology, internal medicine, cardiology and nephrology across the acquired clinics.
Across all TMC clinics, it also plans to market other Empower Clinics services and products such as Kai Care testing solutions and MediSure diabetic management solutions to existing and incoming clinic patients.
"Sudbury Clinics is a significant catalyst for TMC,” Empower’s chief operating officer, Dr. Jordan Rabinowitz, and chief business development officer, Dr. Aviv Tsimerman said.
"By blending their three dozen GPs and 400,000 patient files with our existing telemedicine and specialty services, we are maximizing TMC's integrated healthcare offerings, reach and revenue."
The company said the acquisition increased TMC’s expansion pipeline to 41, including four operational clinics, eight in development and construction, 21 undergoing due diligence, and eight under acquisition.
Advanced discussions continue for additional locations across various provinces, including but not limited to Alberta, British Columbia, and New Brunswick, it added. The next TMC Clinic opening is scheduled for November 1 in Mississauga, Ontario.
Empower also announced it has granted, effective September 22, an aggregate of 100,000 stock options and effective September 23, an aggregate of 200,00 stock options to certain of its employees and contractors under its stock option plan.
Contact the author at stephen.gunnion@proactiveinvestors.com