CRH Medical Corporation Announces Purchase of Remaining Ownership in Lake Lanier Anesthesia Associates

Rhea-AI Summary

CRH Medical Corporation (TSX: CRH, NYSE MKT: CRHM) has completed the acquisition of the remaining 25% stake in Lake Lanier Anesthesia Associates (LLAA), which it initially purchased 75% of in June 2020. This strategic move enhances CRH's ownership to 100%, expected to increase adjusted operating EBITDA for shareholders. The acquisition was financed through a mix of CRH's credit facility and cash reserves. CRH continues to expand its presence in the gastroenterology anesthesia market, with a total of 33 acquisitions to date.

Positive

• Increased ownership in Lake Lanier Anesthesia Associates enhances CRH's market position.
• Acquisition expected to boost adjusted operating EBITDA attributable to shareholders.
• Financing through credit facility suggests financial stability.

Negative

• Risks associated with integration of LLAA and potential operational difficulties.
• Dependence on maintaining anesthesia procedure volumes amidst changing payment rates.

VANCOUVER, BC, April 5, 2021 /PRNewswire/ - CRH Medical Corporation ("CRH", or the "Company") (TSX: CRH) (NYSE MKT: CRHM) announces that it has completed an accretive transaction whereby the Company has acquired the remaining 25% interest in Lake Lanier Anesthesia Associates ("LLAA") a gastroenterology anesthesia practice located in Georgia. CRH initially acquired 75% of LLAA in June of 2020.

This transaction will increase adjusted operating EBITDA attributable to shareholders, as CRH now owns 100% of LLAA. This transaction was financed through a combination of CRH's credit facility and cash on hand.

Jay Kreger, President of CRH Anesthesia, added, "Our initial partnership with LLAA has proven to be a highly successful venture, giving both CRH and our partners at LLAA the conviction and trust necessary to move forward with full alignment. Moreover, we think the two-step approach we have employed with LLAA is a great example of the flexible and differentiated model that we can employ towards business development."

About CRH Medical Corporation:

CRH Medical Corporation is a North American company focused on providing gastroenterologists throughout the United States with innovative services and products for the treatment of gastrointestinal diseases. In 2014, CRH became a full-service gastroenterology anesthesia company that provides anesthesia services for patients undergoing endoscopic procedures in ambulatory surgical centers. To date, CRH has completed 33 anesthesia acquisitions, and now serves 72 ambulatory surgical centers in 15 states. In addition, CRH owns the CRH O'Regan System, a single-use, disposable, hemorrhoid banding technology that is safe and highly effective in treating all grades of hemorrhoids. CRH distributes the O'Regan System, treatment protocols, operational and marketing expertise as a complete, turnkey package directly to gastroenterology practices, creating meaningful relationships with the gastroenterologists it serves. CRH's O'Regan System is currently used in all 48 lower US states.

http://investors.crhsystem.com/

Cautionary Note Regarding Forward-Looking Statements

Certain statements and information included or incorporated by reference in this document may constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities laws (collectively, "forward-looking statements"). Forward looking statements include statements regarding the expected benefits of the Company's recently completed acquisition, as well as all other statements that are not statements of historical fact. Forward-looking statements are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "plan," "intend" or "project" or the negative of these words or other variations on these words or comparable terminology.

Forward-looking statements reflect current expectations of management regarding future events and performance as of the date of this document and involve known and unknown risks, uncertainties and other factors which may cause our actual results to be materially different those expressed or implied by any forward-looking statements. These forward-looking statements should not be read as guarantees of future results, and there can be no assurance that the results expressed or implied by any forward-looking statements will be achieved. Important factors that could cause actual results to differ materially from the results discussed in forward-looking statements include: (i) the risk that the Company may be unable to achieve anticipated synergies relating to the acquisition, or that such acquisition could result in unforeseen operating difficulties and expenditures, or require significant management resources and significant charges; (ii) the possibility that the Company will be unable to retain key personnel; (iii) the risk that customers may terminate or choose not to renew their agreements with us, that we are unable to maintain or increase anesthesia procedure volumes or that there are changes to payment rates or methods of third-party payors;  (iv) the risk of other disruption from the acquisition, including potential adverse reactions or changes to business relationships with customers, employees, suppliers or regulators, making it more difficult to maintain business and operational relationships; (v) risks and uncertainties relating to the pending transaction between the Company and WELL Health Technologies Corp., including those relating to the parties' ability to consummate the proposed transaction in the time period expected or at all, and the parties' ability to achieve the anticipated benefits of such transaction; (vi) uncertainties related to developments in the COVID-19 pandemic and its impact on the Company's operations; and (vii) uncertainties related to general economic, financial, regulatory and political conditions, as well as potential changes in law and regulatory interpretations.

Additional factors that could cause actual results to differ materially from expectations include, without limitation, the risks identified by the Company in its most recent Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K, which are available on EDGAR at www.sec.gov/edgar.shtml or on the Company's website at www.crhmedcorp.com  The Company disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.

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SOURCE CRH Medical Corporation

FAQ

What acquisition did CRH Medical Corporation complete in April 2021?

CRH Medical Corporation completed the acquisition of the remaining 25% interest in Lake Lanier Anesthesia Associates.

How will the acquisition of LLAA impact CRH's financials?

The acquisition is expected to increase adjusted operating EBITDA attributable to shareholders.

What is the financial strategy behind CRH's acquisition of LLAA?

The acquisition was financed through a combination of CRH's credit facility and cash on hand.

How many anesthesia acquisitions has CRH Medical Corporation completed to date?

CRH has completed 33 anesthesia acquisitions to date.

What is the stock symbol for CRH Medical Corporation?

The stock symbol for CRH Medical Corporation is CRHM.