Wellbeing Digital Sciences (NEO:MEDI.AQN, OTCQB:KONEF) Inc said it has signed a memorandum of understanding (MOU) allowing Pathway Health (TSX-V:PHC) Corp to acquire certain Canadian assets of the company for a yet to be determined consideration.
The company said the contemplated transaction would be completed in two stages, concluding on or before June 30, 2022, with the first stage expected to be completed by April 30, 2022.
“We are excited to have executed this MOU and are working hard with Pathway to crystalize it into a set of definitive agreements. The contemplated transaction would enable Wellbeing to continue on the path of evolving its competitive strategy focused on evidence-based mental healthcare through contract research and digital therapeutics,” Najla Guthrie, chief executive officer of Wellbeing, said in a statement.
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Under the terms of the MOU, Pathway would acquire a license for the pain management program of Welllbeing’s wholly-owned subsidiary, IRP Health Ltd, and the intellectual property associated with the provision of intravenous ketamine services to treat mental health conditions, among other assets. The MOU also outlines a fractional franchise model for IRP and a related fee structure.
“This is a significant step in rapidly expanding the accessibility for military veterans, RCMP and first responders of IRP’s Veterans Affairs Canada-approved interdisciplinary pain management program. Path and Wellbeing share the same passion and value to help provide needed services for these heroes. We look forward to solidifying this agreement,” added Steven Inglefield, chief operating officer of Wellbeing and chief executive officer of IRP.
Pathway Health is one of the major providers of out-patient pain management services in Canada while IRP provides multi-disciplinary rehabilitation services to military veterans, RCMP and first responders.
“With our experience in chronic pain management and our aim in growing presence in mental health services, we believe is ideally suited to Pathway Health provide valuable clinical services to this most deserving group of Canadians. We feel very honoured to be taking on this role,” “said Ken Yoon, CEO at Pathway Health.
Contact the author at jon.hopkins@proactiveinvestors.com