TORONTO–(BUSINESS WIRE)–Jack Nathan Medical Corp. (TSXV: JNH) (“Jack Nathan Health” “JNH” or the “Company”) announced the acquisition of Redeem MediSpas (“MediSpas”), two profitable locations, inside JNH medical walk-in clinics at Walmart in Maple and Brampton, Ontario.
The acquisition is immediately accretive and highly complementary to JNH’s already well-established network of health clinics located in 76 Walmart locations across Canada where qualified Medical Practitioners use a multi-disciplinary approach to provide seamless, patient-first healthcare.
- Two MediSpa locations generating an annual consolidated revenue run rate of approximately $500,000 and accretive with adjusted consolidated EBITDA of over 25% (1)
- Purchase price of $535,000 including an earn-out of $200,000 for the opening of eight new clinics ($25,000 per new clinic opening) within 12-18 months. The balance paid out over 60 days from the reopening of existing two locations.
Redeem MediSpa offers a complete range of both surgical and non-surgical treatments for facial and body rejuvenation and aesthetics, including treatments for medical conditions such as migraines, laser therapy, anti-aging, face, and body skin tightening, PRP therapies, joint pain treatments and hair loss to name a few. Consultations are offered both in-person and online to provide patients with the ability to connect in a way that works best for them and makes their life easier.
The acquisition provides JNH Medical Practitioners, including Nurse Practitioners, with an expanded suite of ancillary professional grade treatments to offer patients and help them Live Their Best Life. The deal provides JNH with increased growth potential as it strongly aligns with the Company’s mission to offer patients an integrated approach to health and wellness and access to multiple services all at one convenient location.
“This transaction is in lock-step with Jack Nathan Health’s mission to provide patients with accessible, convenient and quality healthcare by expanding the range of services and treatment options available to both practitioners and patients,” said George Barakat. CEO & Chairman of Jack Nathan Health. “Bringing MediSpa under the Jack Nathan Health banner will drive both immediate increased revenue and a growth trajectory, as we work first to integrate these two locations and then open additional locations in the coming months. We extend a warm welcome to the existing MediSpa team as we incorporate them into Jack Nathan Health.”
During the recent provincial lockdowns for Covid19 at MediSpas two locations in Southern Ontario they have continued to engage patients remotely and sell service packages. This activity has amounted to approximately $74,000 in unearned revenue (pre-sold MediSpa packages) and almost $79,000 in cash on the consolidated balance sheets of the acquired locations, demonstrating the strong and ongoing patient relationships and demand for its services.
With the ability to offer immediate access to high quality services that go beyond simple aesthetics and address medical conditions, Jack Nathan Health MediSpa embodies the Company’s circle of care ethos. In just of many examples, JNH practitioners will be now able to refer patients to Jack Nathan Health MediSpa for Botox, a safe and effective treatment for medical conditions including migraines, hair loss and excessive sweating. In addition, the Circle of Healthcare™ Jack Nathan Health MediSpa will also be launching its own exclusive line of skin care products available at the clinics and online.
The integration of MediSpa will be led by Chief Medical Officer Dr. Glenn Copeland, who brings deep expertise in building and leading multidisciplinary healthcare operations to this initiative.
“The acquisition of MediSpa provides a unique opportunity to further entrench Jack Nathan Health as a full-service provider of quality services, deepening our ability to close the circle of care for each patient by attending to their unique needs,” said Dr. Glenn Copeland, Chief Medical officer of Jack Nathan Health. “I look forward to driving this integration forward as we expand our range of services, including the expansion of our digital footprint through the addition of an e-commerce platform and retail product offerings.”
(1) Based on unaudited 2019 fiscal Results
About Jack Nathan Medical Corp.
Jack Nathan Medical Corp., operating as Jack Nathan Health®, is one of Canada’s largest health care networks. Jack Nathan Health is an innovative health care company that is improving access for millions of patients by co-locating physician and ancillary medical services conveniently located inside Walmart® stores.
Jack Nathan Health provides an exceptional level of patient care, made possible through patient-centric physicians, a variety of medical services, technology, and programs, designed to put patients first. Our mission is to provide everyone access to the finest quality retail medical centres, with both in-clinic physicians and digital telemedicine, so you and your loved ones can “Live Your Best Life”.
Jack Nathan Health was established in 2006 and continues to expand its international footprint, delivering exceptional, state-of-the-art, turn-key medical centres in 76 Walmart locations across Canada including British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec, as well as 11 locations in Mexico.
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Certain statements contained in this press release constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions as they relate to Jack Nathan are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to them, and are subject to certain risks, uncertainties, and assumptions Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Such factors include but are not limited to changes in economic conditions or financial markets; increases in costs; litigation; legislative and other judicial, regulatory, political and competitive developments; the economic and business impact of COVID-19 and operational difficulties. This list is not exhaustive of the factors that may affect forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking information. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.