Irwin Naturals Inc. (CSE:IWIN) said it has completed the acquisition of KHC Capital Group, LLC. which owns a chain of five ketamine treatment clinics in Florida and has an additional partnership contract with an affiliate clinic in Mexico.
"Our roll-up strategy of clinics is highly accretive, enabling us to fuel rapid growth of revenues and profitability. With six clinics under our belt, a pipeline of over 100 targets in our M&A pipeline, and strong demand for these services, we have made the first meaningful strides towards executing on our vision,” the company's CEO, Klee Irwin, said in a statement.
"This is important because, as a psychedelic, ketamine is a stunningly effective treatment1 for many mental health disorders. However, some Americans are not clear on its effectiveness. 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," he added.
READ: Irwin Naturals licenses its brand to Colorado manufacturer of cannabis products Larsen Group II
The acquisition was agreed on April 17, 2022, and, as consideration, the company issued 10,661 proportionate voting shares and 567 subordinate voting shares (SVS). These were equivalent to a total of 1,066,667 SVS on an as-converted to SVS basis and assumed approximately US$1.6 million of debt of which $1 million was repaid at closing, the company said.
It added that the transaction includes an additional contingent consideration based on future milestones related to operational and profitability targets, to be satisfied in shares.
Irwin Naturals has been a household name and best-in-class nutraceutical company since 1994. It is now leveraging its brand into both the cannabis and psychedelic sectors.
Contact the author at jon.hopkins@proactiveinvestors.com