MCI Onehealth Enters Letter of Intent to Acquire Terrace Wellness Group, Adding Mental Health Services to MCI’s Platform fo...
May 06 2021 - 7:04AM
MCI Onehealth Technologies Inc. (“MCI”) (TSX:
DRDR), a clinician-led healthcare technology company focused on
increasing access to and quality of healthcare, has signed a
binding letter of intent to acquire Terrace Wellness Group Inc.
(“TWG”), an innovative provider of mental health services to
individuals and employers. The acquisition is expected to be a
catalyst for growth in MCI’s patient and corporate client base,
leveraging TWG’s established premium platform, preferred vendor
status and long-term relationships with employers and governments,
for whom measurable virtual and in-person mental health and
addictions care is a growing priority.
“This strategic relationship will create the
perfect fit to address the need for primary-care referred access to
mental health and addictions treatment, bringing immediate
advantage to MCI’s patients and corporate customers,” said Dr.
Alexander Dobranowski, MD, CEO of MCI. “MCI will gain
bench-strength by partnering with Terri Storey, a passionate driver
of healthcare innovation, experienced in scaling online and
app-based services. We see this as a tremendous opportunity to
rapidly provide an even more comprehensive virtual and in-person
platform.”
TWG provides measurable, affordable,
leading-edge mental health treatment supported by evidence-based
research. Through technology, TWG improves access to care and
client outcomes, and can lower costs relative to traditional care
through private or public mental healthcare systems. With more than
twenty years of experience providing affordable services to
patients and corporate clients, TWG has developed tailored,
high-quality, cost-effective and scalable digital and real-world
solutions that meet the needs of large and small employers.
“Our track record of employing a holistic
wrap-around care team approach that can be delivered virtually,
fits perfectly with MCI’s commitment to make healthcare more
integrated, personalized and preventative through tech innovation,”
said Terri Storey, CEO and President of TWG. “We’re proud of our
proven experience delivering high-quality, flexible care plans to
manage stress and anxiety sustainably, and we’re excited about
public policy’s direction on mental health as a key part of the
continuum of care.”
TWG’s proven track record of innovative service
delivery to both federal and provincial governments as a preferred
vendor supports MCI’s path for growth. MCI expects the acquisition
of TWG to be immediately accretive to EBITDA. Along with other
recent and planned acquisitions and investments, the relationship
with TWG enhances MCI’s private care and data-driven technology
strategies.
The acquisition and its material terms remain
subject to completion of satisfactory due diligence, the
negotiation of definitive agreements acceptable to the parties and
the satisfaction of closing conditions, including obtaining the
approval of MCI’s board of directors and the Toronto Stock
Exchange, which has not yet considered the transaction. While the
letter of intent is binding, there can be no assurance at this time
that the acquisition will be completed or that it will be completed
on the terms presently contemplated, and any trading of MCI shares
in anticipation of the acquisition should be considered highly
speculative.
About MCI
MCI is a healthcare technology company focused
on empowering patients and doctors with advanced technologies to
increase access, improve quality, and reduce healthcare costs. As
part of the healthcare community for over 30 years, MCI operates
one of Canada’s leading primary care networks with 25 clinics,
serves over 850,000 patients annually and had over 200,000
telehealth visits last year. MCI additionally offers an expanding
suite of occupational health service offerings that support a
growing list of over 250 corporate customers. Led by a proven
management team of doctors and experienced executives, MCI remains
focused on executing a strategy centered around acquiring
technology and health services that complement the company’s
current roadmap. For more information, visit mcionehealth.com.
For IR enquiries please contact:Fernando
Massalin | ir@mcionehealth.com | +1 (416) 440-4040 ext 155
For media enquiries please contact:Nolan Reeds
| nolan@mcionehealth.com | +1 (416) 440-4040 ext 158
Forward-Looking Statements
This press release contains forward-looking
information and forward-looking statements (together,
“forward-looking statements”) within the meaning of applicable
securities legislation, which reflects MCI’s current expectations
regarding future events, including statements relating to: the
acquisition of TWG by MCI (including the expected benefits
thereof); the integration of TWG’s and MCI’s services; the rising
global need for mental health and addictions care; and the
direction of public policy affecting the industry. In some cases,
but not necessarily in all cases, forward-looking statements can be
identified by the use of words or phrases such as “plans”,
“targets”, “expects”, “estimates”, “intends”, “anticipates”,
“believes”, “to acquire”, “rising”, “subject to” or variations of
such words and phrases or state that certain actions, events or
results “may”, “could”, “would”, “might” or “will” occur.
Forward-looking statements are based on a number of assumptions,
including assumptions about the likelihood of completing the
acquisition, the material terms and timing of the acquisition, the
ability to integrate TWG into MCI’s existing service offerings and
trends in the mental health and addictions care industry, that are
subject to a number of risks and uncertainties, many of which are
beyond MCI’s control, which could cause actual results and events
to differ materially from those that are disclosed in or implied by
such forward-looking statements. Such risks and uncertainties
include the risk: that definitive agreements for the acquisition
cannot be negotiated or cannot be negotiated on terms as favourable
as anticipated; that the necessary conditions to completing the
acquisition, including obtaining any necessary regulatory, Toronto
Stock Exchange or other approvals, cannot be satisfied;
difficulties integrating TWG into MCI’s existing business; changes
in the mental health and addictions care industry; competitors in
the industry; technologies proving to be more difficult to develop
than anticipated or not working as anticipated; customer demand for
new technologies not meeting expectation; and other risks discussed
under “Risk Factors” in MCI’s annual information form for the year
ended December 31, 2020 which is available under MCI’s profile on
SEDAR at www.sedar.com. All forward-looking statements made in this
press release are made as of the date hereof and MCI does not
undertake any obligation to update such forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable law.
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