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. [NLINSERT]
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