TORONTO, April 21,
2022 /CNW/ - Pathway Health Corp. (TSXV: PHC)
(Frankfurt: KL1) (formerly Colson Capital Corp.) ("Pathway"
or the "Company"), an integrated healthcare company that provides
products and services to patients suffering from chronic pain and
related conditions, is pleased to announce that it has signed
a memorandum of understanding ("MOU") with Wellbeing Digital
Sciences Inc. ("Wellbeing") pursuant to which Pathway would acquire
certain Canadian assets of Wellbeing. The contemplated transaction
is expected to be completed in two stages, all concluding on or
before June 30, 2022.
Pursuant to the terms and conditions of the MOU, Pathway would
acquire a license for the pain management program of Wellbeing's
wholly owned subsidiary, IRP Health Ltd. ("IRP"), and the
intellectual property ("IP") associated with the provision of
intravenous ketamine services ("IVK") to treat mental health
conditions, among other assets. The MOU also outlines a fractional
franchise model for IRP and related fee structure. The first
closing is contemplated to include IRP and IVK on or before
April 30, 2022, while the second
closing is contemplated to include the remaining assets documented
in the MOU on or before June 30,
2022. The consideration for the assets is under final
negotiation.
Wellbeing is an evidence-based mental healthcare company focused
on the development and implementation of innovative clinical
solutions, such as psychedelic medicine and digital therapeutics
supported by clinical research. IRP, its wholly owned subsidiary,
provides multi-disciplinary rehabilitation services to military
veterans, RCMP and first responders. Under the contemplated
transaction, IRP would provide IP and support services related to
staff training, branding, licensing, and program development
including verification of Pathway clinic locations with Veterans
Affairs Canada to serve more patients. The completion of the
completed transaction is subject to terms and conditions which
include but are not limited to the execution of a set of definitive
agreements, completion of satisfactory due diligence, the delivery
and satisfactory review of the financial statements and the
approval of the transaction by the boards of directors of all
applicable entities.
"We're very pleased to be entering into this agreement with
Wellbeing and IRP as we expand our pain and mental health services
to our miliary veterans, RCMP and other first responders," said
Ken Yoon, CEO at Pathway Health.
According to a 2021 research paper published by the Journal of
Military, Veteran, and Family Health1, veterans appear
to be particularly vulnerable to experiencing chronic pain, with
rates that are two to three times higher than in the general
population. More specifically, recent studies of Canadian Air Force
Veterans have noted prevalence between 41% and 64%. "With our
experience in chronic pain management and our aim of growing
presence in mental health services, we believe Pathway Health is
well suited to provide these valuable clinical services to this
most deserving group of Canadians. We feel very honoured to be
taking on this role."
Najla Guthrie, Chief Executive
Officer of Wellbeing, commented "We are excited to have executed
this MOU and are working hard with Pathway to crystalize it into a
set of definitive agreements. The contemplated transaction would
enable Wellbeing to continue on the path of evolving its
competitive strategy focused on evidence-based mental healthcare
through contract research and digital therapeutics,"
"This is a significant step in rapidly expanding the
accessibility for miliary veterans, RCMP and first responders of
IRP's Veterans Affairs Canada-approved interdisciplinary pain
management program. Path and Wellbeing share the same passion and
value to help provide needed services for these heroes. We look
forward to solidifying this agreement," added Steven Inglefield, Chief Operating Officer of
Wellbeing and Chief Executive Officer of IRP.
About Wellbeing Digital
Sciences
Wellbeing Digital Sciences Inc. is an evidence-based mental
healthcare company focused on the development and implementation of
innovative clinical solutions such as psychedelic medicine and
digital therapeutics supported by clinical research. Its mission is
supported by a network of North American clinics that provide
innovative mental health treatments, including ketamine therapy and
other psychedelic medicines, digital therapeutic treatments, and
proprietary physical therapy, among others, as well as a contract
research organization that offers clinical trials services to
clients pursuing drug/device
development.
About Pathway Health
Pathway Health is an integrated healthcare company that provides
products and services to patients suffering from chronic pain and
related conditions. The Company owns and operates eleven
community-based clinics across four 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 Health'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. The
Company is working with several pharmacy companies on the
development of Cannabis Health Products (CHPs) for OTC product
distribution through retail pharmacy locations across the country
following anticipated changes to the Cannabis Act.
For more information, visit Pathway Health's website:
www.pathwayhealth.ca
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable, are subject to known
and unknown risks, uncertainties, and other factors that may cause
the actual results and future events to differ materially from
those expressed or implied by such forward-looking statements. Such
factors include, but are not limited to, general business,
economic, competitive, political, and social uncertainties; delay
or failure to receive applicable approvals; and the results of
operations. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. Pathway disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Neither the Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this Press Release.
The TSX Venture Exchange Inc. has in no way passed upon the merits
of the proposed transaction and has neither approved nor
disapproved the contents of this press release.
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1
https://jmvfh.utpjournals.press/doi/full/10.3138/jmvfh-2021-0051#:~:text=Veterans%20appear%20to%20be%20particularly,than%20in%20the%20general%20population.&text=Specifically%2C%20recent%20studies%20of%20CAF,between%2041%25%20and%2064%25.
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SOURCE Pathway Health Corp.