Enables Crescita to Participate in the
Growing Medical Aesthetics Market
Provides Commercial Platform for Crescita’s
Medical and Aesthetic Brands
Provides Insights into Consumer
Preferences
Crescita Therapeutics Inc. (TSX: CTX) (OTC US: CRRTF)
(“Crescita” or the “Company”), a growth-oriented, innovation-driven
Canadian commercial dermatology company, today announced that it
has completed the acquisition of a minority interest in Akyucorp
Ltd. d/b/a The Best You®, a privately-held network of six medical
aesthetic clinics in the province of Ontario (“The Best You”). In
consideration for the minority interest investment, Crescita will
issue 470,128, or 2.2% of its common shares (the “Common Shares”),
at a price of $0.70 per Common Share. In addition, the Company will
support the Best You’s growth strategy by way of a secured
convertible promissory note (the “Convertible Note”) with an
initial principal amount of C$0.5M, that could reach up to C$1.25M,
contingent on certain events and conditions being met. The
Convertible Note will bear interest at variable rates based on the
annual volume of purchases of Crescita products and is convertible
at Crescita’s option into an additional equity interest in The Best
You.
The alliance with The Best You provides numerous advantages for
Crescita:
- commercial platform to increase sales of its medical and
aesthetic brands: Pliaglis®, Laboratoire Dr Renaud® and
Pro-Derm®;
- additional opportunities for Crescita’s in-licensed medical
products: NCTF® and ART-FILLER®;
- participation in the booming medical aesthetics market through
The Best You’s consolidation strategy;
- insights into end consumer preferences to fuel product
portfolio evolution.
The Best You clinics, together with their affiliated physicians
and specialists, provide private pay cosmetic procedures such as
neurotoxin injections, dermal fillers, Limitless Hair Removal™, and
platelet-rich plasma (“PRP”) procedures. The Best You clinics carry
a full range of skincare and dermatology products and offer popular
cosmetic surgery procedures, including liposuction, breast
augmentations, face lifts and blepharoplasty. In addition to
aesthetic services, The Best You clinics also provide skin cancer
screening and surgical treatments covered by the Ontario Health
Insurance Plan (“OHIP”) via its SkinCancerCare.ca network.
Serge Verreault, President and Chief Executive Officer of
Crescita, commented, “This investment is well aligned with our
growth strategy to scale up in the medical aesthetics space. Our
alliance with The Best You provides an excellent commercial
platform for some of our gold-standard medical brands such as
Pro-Derm, NCTF and ART-FILLER, a range of Hyaluronic Acid-based
injectables expected to launch in early 2022. We also expect to get
closer to our end consumers and gain valuable insight into their
preferences and expectations with regards to medical aesthetic
procedures. This, in turn, will allow us to develop more tailored
skincare solutions for consumers.”
Dr. Deniz Akyurekli, MD, Founder and Chief Medical Officer of
The Best You, said, “At the Best You, we help customers
look and feel their best to enhance their overall well-being and
quality of life. We do this through personalized plans that are
conservative, yet innovative, to create the greatest positive
change while minimizing risk. We are excited to work with Crescita,
and we anticipate collaborating closely on the development of new
product formulations that will help us to provide a larger
complement of products and services and continue to deliver the
highest quality care for our customers.”
Sebastien Charles, President and Chief Operating Officer of
The Best You, added, “Crescita brings industry knowledge and
capital, which are both key elements in accelerating the execution
of our growth plans. We operate in an attractive, high growth, but
fragmented market and continue to see a steady increase in medical
aesthetic procedures. We believe that we will now be able to
participate in the consolidation of aesthetic practices from a
position of strength. This alliance also provides access to
Crescita’s R&D expertise and manufacturing platform. With
Crescita behind us, we will be able to take advantage of exciting
opportunities and continue to be a leader in our field.”
About Crescita Therapeutics Inc.
Crescita (TSX: CTX and OTC US: CRRTF) is a growth-oriented,
innovation-driven Canadian commercial dermatology company with
in-house R&D and manufacturing capabilities. Crescita offers a
portfolio of high-quality, science-based non-prescription skincare
products and early to commercial stage prescription products. In
addition, Crescita owns multiple proprietary transdermal delivery
platforms that support the development of patented formulations
that facilitate the delivery of active ingredients into or through
the skin.
About The Best You
The Best You is a network of six privately held medical
aesthetic clinics in the province of Ontario. Since 2002, The Best
You has been a leading provider of safe and effective cosmetic
medical, laser and surgical procedures and skin cancer management.
For an extensive list of our product and services visit
www.thebestyou.com and www.skincancercare.ca.
Forward-looking Statements
This press release contains “forward-looking information” within
the meaning of applicable securities laws (collectively,
“forward-looking statements”). Forward-looking statements can be
identified by words such as: “anticipate”, “intend”, “plan”,
“goal”, “seek”, “believe”, “project”, “estimate”, “expect”,
“strategy”, “future”, “likely”, “may”, “should”, “will” and similar
references to future periods. Examples of forward-looking
statements include, but are not limited to, statements regarding
the Company’s objectives, plans, goals, strategies, growth,
performance, operating results, strategy for customer retention,
product development, market position, business prospects,
opportunities and industry trends and similar statements concerning
anticipated future events, results, circumstances, performance or
expectations. Forward-looking statements are neither historical
facts nor assurances of future performance. Instead, they are based
only on current beliefs, expectations and assumptions regarding the
future of the Company’s business, future plans and strategies,
projections, anticipated events and trends, the economy and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of the Company’s control. Crescita’s actual
results and financial condition may differ materially from those
indicated in the forward-looking statements. Therefore, you should
not unduly rely on any of these forward-looking statements.
Important factors that could cause Crescita’s actual results and
financial condition to differ materially from those indicated in
the forward-looking statements include, among others: economic and
market conditions, the impact of the COVID-19 pandemic and the
response thereto of governments and consumers, the Company’s
ability to execute its growth strategies, reliance on third parties
for clinical trials, marketing, distribution and commercialization,
the impact of changing conditions in the regulatory environment and
product development processes, manufacturing and supply risks,
increasing competition in the industries in which the Company
operates, the Company’s ability to meet its debt commitments, the
impact of unexpected product liability matters, the impact of
litigation involving the Company and/or its products, the impact of
changes in relationships with customers and suppliers, the degree
of intellectual property protection of the Company’s products, the
degree of market acceptance of the Company’s products, developments
and changes in applicable laws and regulations, as well as other
risk factors discussed in the “Risk Factors” sections of the
Company’s most recent annual MD&A for the year ended December
31, 2020 and the Company’s AIF dated March 24, 2021. Any
forward-looking statement made in this press release is based only
on information currently available and speaks only as of the date
on which it is made. Except as required by applicable securities
laws, Crescita undertakes no obligation to publicly update any
forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future developments or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20210907005452/en/
Crescita Therapeutics Investor Relations Linda Kisa, CPA,
CA Email: lkisa@crescitatx.com
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