Irwin Naturals Inc. (CSE:IWIN) said it has begun the execution of its ketamine clinic rollup strategy, a move the company said is motivated by an intention to become the world’s largest chain of psychedelic mental health clinics.
This first acquisition target is Midwest Ketafusion in Iowa City, Iowa.
“The leadership showed by Ketafusion in this space, and the access to the care they are providing their fellow Iowans make this first upcoming acquisition in our national roll-up all the more exciting,” said Irwin Naturals CEO Klee Irwin in a statement.
Additionally, he noted, that with a large proportion of the consideration being back-end loaded and earn-out based, the sellers, who will remain with the business, are aligned with the company’s shareholders’ interests.
“With each acquired clinic to be renamed Irwin Naturals Emergence, we are the world’s first household name to enter the space and are executing towards becoming the largest clinic chain in the world,” Irwin added.
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The Los Angeles-based company said that its wholly-owned subsidiary, Irwin Naturals Emergence, and the shareholders of Midwest Ketafusion, LLC have entered into a definitive agreement dated February 7, 2022, pursuant to which Irwin Emergence will acquire all of the issued and outstanding securities of Ketafusion.
Irwin noted that the company sees itself as gaining the national brand first-mover advantage and will be leveraging its brand equity and status as a cult brand to expand rapidly as society embraces the psychedelic mental health revolution.
“This is important because, as a psychedelic, ketamine is a stunningly effective treatment for many mental health disorders,” Irwin said. “However, some Americans are not clear on its legality, safety, and effectiveness.”
He added: “With nearly 80% of US households familiar with the trusted Irwin brand, it will be the welcome face of a familiar friend in a crowd of strangers – making this lifesaving solution a bit less intimidating to those in need.”
CEO of Ketafusion, Charlie Hong, said that he found Irwin's approach to America’s mental health crisis impressive. Its philosophy is to use the existing national scale to drive down patient costs, while being profitable at all stages of the expansion.
“That’s unusual,” he said. “Many of the publicly traded players in the space have business models that justify losing money and charge non-accessible prices to patients.”
He added: “Furthermore, the team at Irwin has proven itself in being capable of building a national brand with an exceptionally faithful customer base.”
Contact Ritika at ritika@proactiveinvestors.com