Mednow Acquires Medvisit, Canada’s Largest and Longest Standing Doctor Home Visit Provider

Rhea-AI Summary

Mednow has acquired Medvisit for $1,320,000 in cash, along with a potential earn-out of $680,000 based on profitability milestones. Medvisit is Canada’s largest doctor house call service, facilitating around 30,000 home visits annually and generating approximately $3 million in revenue last fiscal year. This acquisition enhances Mednow's healthcare offerings, allowing for integrated services that benefit patients unable to visit clinics. CEO Karim Nassar emphasizes the strategic nature of this deal in expanding Mednow's healthcare footprint in Canada.

Positive

• Acquisition enhances Mednow's holistic healthcare offerings.
• Medvisit's established network provides a robust patient base.
• Potential revenue growth through integrated service offerings.

Negative

• Acquisition cost may place financial strain on Mednow.
• Conditional earn-out linked to profitability could affect cash flow.

Mednow Inc. (“Mednow” or the “Company”) (TSXV:MNOW; OTCQB:MDNWF), Canada’s on-demand virtual pharmacy, is pleased to announce the Company has acquired 2716725 Ontario Inc. dba Medvisit (“Medvisit”) for $1,320,000 in cash upon closing and a conditional earn-out of up to $680,000, subject to profitability milestones.

Medvisit is Canada’s largest and longest standing doctor house call service, having been in operation for over 30 years. Medvisit conducts approximately 30,000 patient home visits per year and has served over 400,000 patients since inception. In its latest fiscal year, Medvisit earned revenue of approximately $3 million and a gross profit of approximately $790,000. Patients that are unable to leave their home rely on over 100 doctors in the Medvisit network for the treatment of acute and episodic illness and injury.

The acquisition of Medvisit bolsters Mednow’s holistic healthcare offering for patients, which currently includes pharmacy services, telemedicine and mental health assessment. Through the Medvisit patient network, Mednow is well positioned to offer a full platform of services to a large sub-set of patients that can benefit greatly from a full suite of digital healthcare and delivery services.

“Medvisit is a very attractive and strategic acquisition for Mednow as we strive to become a household name in Canadian healthcare. Combined with our virtual care business, we can now send a physician to a patient's home when a virtual visit is not adequate to meet the patients needs in the GTA. Our fully digital pharmacy, unique medication adherence solutions and telemedicine offering are ideal compliments for Medvisit’s client base that have limitations on mobility. The market for pharmacy and healthcare services in Canada is large and remains ripe for disruption. Mednow aims to continue adding services to its platform that change the way healthcare is delivered to patients. The Medvisit acquisition also highlights our continuing approach to accelerating our strategy through both organic development and mergers and acquisitions,” said Karim Nassar, Chief Executive Officer.

About Mednow Inc.

Mednow is a healthcare technology company offering virtual access with exceptional care. Designed with access and quality care in mind, Mednow.ca provides virtual pharmacy services with convenience and through an interdisciplinary approach to healthcare that is focused on the patient experience. Pharmacy services include free at-home delivery of medications, a user-friendly interface for easy upload, transfer and refill of prescriptions, access to healthcare professionals through an intuitive chat experience, a specialized PillSmart™ system that packages prescriptions and vitamins by date and time, as well as access to telemedicine.

To learn more, follow Mednow on Facebook, Twitter, LinkedIn and Instagram, as well as visit www.mednow.ca/.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210806005096/en/

FAQ

What is the significance of Mednow's acquisition of Medvisit?

The acquisition strengthens Mednow's healthcare services by integrating a large doctor house call service, allowing for improved patient care.

How much did Mednow pay for Medvisit?

Mednow acquired Medvisit for $1,320,000 in cash, with a conditional earn-out of up to $680,000.

What services does Medvisit provide?

Medvisit is Canada’s largest doctor house call service, conducting approximately 30,000 home visits annually.

What impact will the acquisition have on Mednow's business strategy?

The acquisition aligns with Mednow's strategy to enhance service offerings and expand its patient base in Canadian healthcare.

What financial performance did Medvisit report prior to the acquisition?

In its latest fiscal year, Medvisit reported approximately $3 million in revenue and a gross profit of about $790,000.