Irwin Naturals Inc. (CSE:IWIN) said it has reached a binding agreement to acquire Dura Medical LLC, a clinic in Naples, Florida that offers ketamine-infusion therapy among its options for cutting-edge treatment of mental health disorders.
The clinic will be incorporated into Irwin Naturals Emergence, a fast-growing national chain offering psychedelic mental healthcare that already includes five clinics in Florida.
"We're moving fast to realize our goal of being first in building the biggest chain of psychedelic mental healthcare clinics in the country,” Klee Irwin, CEO of Irwin Naturals said in a statement.
READ: Irwin Naturals reaches binding agreement to acquire Ketamine Infusions of Idaho
“We've been very selective, targeting clinics that provide quality customer care while also prioritizing financial health, and Stephen, Liz and their team have built a practice that is exceptional in both regards. We're so excited they have accepted our invitation to join the family as Irwin Naturals pushes toward the front of this incredibly exciting frontier in mental healthcare," he added.
Irwin Naturals will pay for the acquisition of Dura Medical via a combination of cash and stock, with the maximum payable contingent on a number of milestones related to profitability and operational goals. The company said it will provide further details upon closing.
Increasing awareness and access
Dura Medical specializes in helping patients with mental health disorders classified as treatment-resistant with an approach that includes psychotherapy as well as options for ketamine infusion therapy and MagVenture transcranial magnetic stimulation (TMS).
Its founder Stephen Durand is a certified registered nurse anaesthesiologist (CRNA), who earned a master's degree from Florida Gulf Coast University. While specializing in obstetric anaesthesia, he gained experience using ketamine to treat surgical pain, and later went on to train in using ketamine for treating mental health disorders. He founded Dura Medical in 2018 with his wife, Liz, who is a registered nurse.
"We built this clinic out of a belief that these treatments would help people who were suffering in our community. Our desire has been to increase awareness and access to novel, safe and effective ways of treating mental health disorders,” Durand said.
“We are excited to be joining the Irwin Naturals Emergence team because we truly believe we are going to be able to help more people get well and stay well," he added.
“Ambassador and pioneer”
Irwin Naturals began in 1994 by providing best-in-class nutraceuticals. Today, its products are stocked on the shelves of more than 100,000 storefronts in North America, and its brand name is recognized in 80% of US homes.
Earlier this year, the company announced it intended to move to the forefront of psychedelic mental healthcare by assembling a national chain of clinics. Irwin Naturals Emergence has vetted more than 600 independent ketamine clinics currently operating in the United States, seeking to identify profitable clinics that practice the standard of customer care consistent with the Irwin Naturals brand.
Irwin Naturals Emergence has already reached agreements with clinics located in seven different states, including five clinics it previously acquired in Florida.
Building a national chain will offer efficiencies and the cost-benefits that come from economies of scale. The incorporation of Irwin Naturals best practices will also help drive down operating costs, savings that can be passed on to customers by providing sliding-scale discounts or free treatments for those in need.
"We see ourselves as both an ambassador and a pioneer. We are a nationally known brand, having safely cared for the health of our customers for almost 30 years now, and our presence in this fast-emerging sector of mental healthcare speaks to the effectiveness and safety of these life-changing treatments. We send a message simply by being in the space," the Irwin Naturals CEO concluded.
Share issue
The company also said it will issue an aggregate of 33,333 subordinate voting shares to a provider of capital markets advisory services as partial payment of fees owed to the service provider.
The aggregate deemed value of the common shares to be issued is C$128,290, and the shares will be subject to a hold period of four months. The shares are being issued in lieu of cash in order to conserve the cash resources of the company.
CFO change
Separately, Irwin Naturals announced that Philippe Faraut has tendered his resignation as its chief financial officer (CFO), secretary, and board member of the company, effective November 1, 2022. Sean Sands, the company's vice president of Finance, will be promoted to fill the roles of CFO and secretary, the company added.
Contact the author at jon.hopkins@proactiveinvestors.com