Mednow Inc (TSX-V:MNOW, OTCQB:MDNWF) announced that it has agreed to acquire all of the issued and outstanding shares of Mednow East, in consideration for about C$65,578 in cash as well as the conversion of approximately C$1,374,422 in debt owed by Mednow East to Mednow into a non-interest bearing, on-demand convertible promissory note.
Mednow said the acquisition will allow it to provide free same-day pharmaceutical delivery services in the Greater Toronto Area (GTA) and surrounding areas, and free next-day delivery in the rest of Ontario.
Mednow East, which operates an online pharmacy that delivers prescriptions in the Canadian province of Ontario, employs Mednow’s marketing and technology platform for lead generation, prescription fulfillment and customer services pursuant to a previous Pharmacy Agreement between the companies.
READ: Mednow forecasts substantial revenue growth from strong demand for its virtual pharmacy services
Mednow noted that Mednow East’s revenue and expenses will be consolidated with those of Mednow and the Pharmacy Agreement between the two parties will be terminated.
It added that the acquisition of Mednow East will help accelerate its goal of building out a national pharmacy footprint.
The transaction is subject to corporate and regulatory approvals, including TSX Venture Exchange approval.
Toronto-based Mednow is a healthcare technology company that offers virtual access with a high-standard of care. Its virtual pharmacy Mednow.ca provides pharmaceutical and telemedicine services as well as doctor home visits through an interdisciplinary approach to healthcare that is focused on the patient experience.
Mednow currently operates in the provinces of British Columbia, Ontario, and Nova Scotia and plans to launch its Winnipeg, Manitoba, and Montreal, Quebec fulfillment centres in March 2022.
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