By The Life Science Report
Source: Streetwise Reports 04/03/2019
The transaction will allow the company to add a prescription fill and fulfillment component to its telemedicine app.
Premier Health Group Inc. (PHGI:CSE; PHGRF:OTCQB; 6PH:FSE) entered into a share purchase agreement to acquire two operating pharmacies in metropolitan Vancouver. The transaction is expected to close in in Q2/19, according to a company press release.
During the fiscal year ended Aug. 31, 2018, the pharmacies, both cash flow positive, generated a combined revenue of about $6 million and together incurred roughly $5.44 million in cost of goods sold and operating expenses.
To purchase all of the outstanding shares of the pharmacy companies, Premier, per the agreement, will take on approximately $2.5 million in net liabilities and pay the pharmacy entities, in a combination of cash, common shares and performance shares, up to $4,057,733.
The management teams of both pharmacies will stay on and continue running their respective enterprises after Premier completes the acquisition.
As a tie-in to Premier’s medical cannabis decision tool, these pharmacists will be able to help patients with medical cannabis education and support. Further, Premier could open a new medical and/or cannabis clinic inside the larger pharmacy in its more than 6,000 square feet. The second pharmacy is roughly 2,000 square feet in size.
“We are very excited about this opportunity to acquire two well-run and profitable pharmacies. As part of our patient centric model, fill and fulfillment is a major component of our telemedicine app. We are also pleased to have the pharmacies’ key management team, with over 20 years’ of combined experience managing pharmacies, come on board to continue running operations. We look forward to working together to improve fulfilment for our rapidly growing patient base,” said Dr. Essam Hamza, CEO of Premier Health.
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Premier Health Group Inc. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Premier Health Group Inc., a company mentioned in this article.
( Companies Mentioned: PHGI:CSE; PHGRF:OTCQB; 6PH:FSE,