[ad_1]
/NOT FOR DISTRIBUTION TO
Highlights
Pathway Health ,The Newly Institute , andHEAL Global Holdings combination to create a leading integrated mental health, chronic pain management, and wellness foundation for growth- Synergistically designed to address growing
$700 billion 1 global market opportunity for mental health, chronic pain and wellness - Strategic growth plan in place to expand service offerings, cross-sell, and expand clinical footprint across the country
- Pathway secured additional
$1 million secured debt funding fromAvonlea-Drewry Holdings Inc. (“ADH“), Pathway’s largest indirect shareholder and secured creditor, to support completion of the proposed transaction (see press release datedApril 25, 2023 ) $14.5 million 2 in combined revenue for 2022, with goal for 2023 revenue in the approximate range of$22 to$28 million and target to close 2023 with annualized revenue run rate in the approximate range between$32 to$42 million 3- Launching
$10 million financing to support combined platform and growth plan
Introducing HEAL Canada
A paradigm shift in mental health and chronic pain management. HEAL
HEAL
Fusing bio-psycho-social treatment models with medically assisted therapies. HEAL
HEAL
HEAL
The Newly Clinic Division – All clinical offerings will come under the Newly unit and will encompass treatment of both mind and body delivered in an integrated interdisciplinary format. Through medically managed IOPs, the Newly unit will focus on addressing mental health, return-to-work rehabilitation, addiction, and providing medically assisted psychotherapy and interventional pain management (“IPM“), for Canadians living with mental illness and/or chronic pain.
As one of
“The demand for integrated mental health care in
The TCN Medical Cannabis Division – This unit is currently a leading provider of medical cannabis clinical services in Canada and has established itself as the leading partner of national and regional pharmacy companies for the delivery of these services to their customers. This division will look to expand its pharmacy relationships to co-develop programs to better serve their client needs for better health and wellness. The use of cannabinoid based products for medical and wellness purposes is fragmented across a vast number of non-differentiated, generic SKUs and sales channels. We believe distribution and branding will be key to creating differentiation and capturing market share. TCN will be looking to consolidate sales to a limited number of SKUs and product lines that in the future could potentially be developed under control brands with our pharmacy partners. Under current legislation, TCN is curating best-in-class medical products (including products with delivery formats that are better suited for indications being addressed) with the goal to pilot sales through TCN branded e-commerce portals (“MyPath“), currently under development, for increased revenues and streamlining of patient journey under a non-possession sales license. TCN has applied for a cannabis license for federal sale of cannabis products for medical purposes without possession. The application is currently under review.
With the anticipated introduction of legislative framework on the sale and development of
Anticipated Key Benefits to the Proposed Transaction
The Proposed Transaction is expected to provide various benefits, including growth opportunities. Key benefits and growth initiatives may be summarized as follows:
Anticipated increased financial strength. The anticipated increased financial strength of the combined entities is expected to provide enhanced ability to fund the robust pipeline of new clinical locations and growth projects. Greater scale and a national footprint should accelerate reputational recognition across
Creates a larger ecosystem – The combined entities will create a larger ecosystem for patients who could benefit from access to a broader and more extensive range of services and/or products at more locations leading to the potential for increased revenue per patient without increasing per patient retention costs. The expected improved client outcomes from treatment of both mind and body, as well as patient engagement through technology targeted for development, should lead to better patient retention in the combined ecosystem.
Increased patient base – This combined client list is anticipated to be in excess of 350,000 patients within HEAL Canada’s end-to-end mental health and pain database. A targeted marketing strategy will leverage this database for increased future sales. As a combined business, there are stronger opportunities for potential cross-selling of services and services.
Anticipated synergies – The combined, corporate overhead can be leveraged across larger scale operating divisions. Economies of scale also allows opportunity for costs savings from greater purchasing power. Many of the costs of running clinics can benefit from economies of scale, such as technology, the sharing of HCPs and administrative medical staff, and back-office support functions.
Key Growth Initiatives
Leveraging a
Service Expansion – HEAL
International Expansion – As a foundational asset for
Strategic Acquisitions – Leveraging the combined management team’s significant experience in strategic acquisitions, HEAL Canada will look to expand its presence and supplement its service offerings through select additions to its asset base. HEAL
“We believe simplified patient access and world leading outcomes will establish HEAL Canada as a foundational platform for replication in key markets across
Outlook and Key Growth Drivers
The combined revenue of Pathway, Newly and HEAL Global for the year ended 2022 was approximately
- Drive Newly clinical revenues through cross selling of new services and increased referral sources
- Expand insurer payor base to support new clinic development in
British Columbia ,Ontario ,Nova Scotia andNewfoundland - Integrate clinical services and patient referral networks across the clinic base
- Launch integrated rehabilitation programs for veterans and first responders in
British Columbia ,Ontario ,Alberta andNova Scotia - Continued consolidation and acquisition of key medical cannabis clinic targets
Financing
To support the integration, operations, and drive growth of HEAL Canada, a private placement financing with minimum aggregate proceeds of
As announced
New Leadership
Post completion of the Proposed Transaction,
About
Pathway is an integrated healthcare company that provides products and services to patients suffering from chronic pain and related conditions. The Corporation owns and operates eleven community-based clinics across five provinces where its team of health professionals work together to help patients through a variety of evidence-based approaches and products, including medical cannabis. Pathway’s patient care programs utilize an interdisciplinary approach that is guided by trained pain specialists, physical and occupational therapists, psychologists, nurses, and other healthcare providers. Pathway is also the leading provider of medical cannabis services in Canada and has established itself as the leading partner with national and regional pharmacy companies for the delivery of medical cannabis services to their customers. Pathway is working with several pharmacy companies on the development of
About
The Newly Institute Inc., a Calgary, Alberta based private company, believes mental health treatment is in drastic need of a paradigm shift. Their vision is to provide long-lasting change within the industry, community and patients. They have pioneered an intensive bio-psycho-social-spiritual treatment model that can be supplemented by medically managed psychedelic-assisted therapies when appropriate. Their medical professionals help patients overcome deeply embedded traumas, addiction and pain that are preventing them from living fully in their everyday lives. While their programs are based on evidence and data, the approach remains personal as it is vital that people feel safe as together the patient and The Newly do the difficult work necessary to achieve wellness.
The company strives to become Canada’s largest and premier operator of inter-disciplinary mental health clinics. They currently operate clinics in Calgary, Fredericton, and Edmonton with additional locations planned across Canada.
About
HEAL, a privately held company existing under the laws of the Province of Alberta, was established with the goal of becoming a global leader in personalized, curated healthcare.
Cautionary Notice Regarding Forward-Looking Statements and Information
This press release contains forward-looking statements and information (collectively, “forward-looking information“). The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends”, “potential”, “pro forma” and similar expressions are intended to identify forward-looking information. Forward-looking information presented in such statements or disclosures may, among other things, relate to: the anticipated benefits and growth initiatives from the Proposed Transaction including, but not limited to, anticipated cost savings; the anticipated Private Placement; the expected management of Pathway following the completion of the Proposed Transaction; combined operational and financial information and the nature of Pathway’s operations following completion of the Proposed Transaction including Pathway’s business outlook following the completion of the Proposed Transaction; plans and objectives of management for future operations; and anticipated operational and financial performance.
The forward-looking information in this press release is based (in whole or in part) upon factors and assumptions which may cause actual results, performance or achievements of Newly, Pathway or HEAL Global, to differ materially from those contemplated (whether expressly or by implication) in the forward-looking information. Those factors and assumptions are based on information currently available to Newly, Pathway and HEAL Global, including information obtained from third party sources and assumptions. Neither Newly, Pathway nor HEAL Global assumes any responsibility for the accuracy or completeness of such third-party information. Actual results or outcomes may differ materially from those expressed or implied by forward-looking information. Various factors and assumptions have been considered and made in respect of forward-looking information including: the receipt of the necessary approvals in respect of, and completion of, the Proposed Transaction; no material changes in the legislative and operating framework for the business of Newly, Pathway and HEAL Global, as applicable; no material adverse changes in the business of any or all of Newly, Pathway and HEAL Global; the ability of Pathway to obtain necessary financing; that a superior proposal will not emerge in respect of any party; the realization of the anticipated benefits and other synergies and cost savings of the Proposed Transaction; risks regarding the integration of the businesses of each of Newly, Pathway and HEAL Global; the assessment of the value of Newly, Pathway and (or) HEAL Global; no significant event occurring outside the ordinary course of business of Newly or Pathway, as applicable; and the assumptions relating to targeted revenue and annualized revenue run rates set forth elsewhere in this news release.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the “Risk Factors” section of Pathway’s Annual Information Form dated
This news release contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about estimated targeted revenue and annualized revenue run rates, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. Actual financial results may vary from the amounts set out herein and such variation may be material. Management believes that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgements. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, neither Newly, Pathway nor HEAL Global undertakes any obligation to update each FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about anticipated future business operations on an annual basis. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
Neither
_________________________________ |
1 |
2 Unaudited consolidated revenue figures of |
3 Key assumptions to attain targeted revenue (which are the consolidated figures of |
4 |
5 Review of cannabidiol: Report of the |
7 Unaudited consolidated revenue figures of |
SOURCE
© Canada Newswire, source
[ad_2]
Source link