Premier Health Group Inc. (PHGI:CSE; PHGRF:OTCQB; 6PH:FSE) closed on its acquisition of two pharmacies in Vancouver, Canada, it announced in a news release.
The details of the transaction are that Premier Health would purchase all of the pharmacies' outstanding shares from the vendors. In so doing, it would assume the pharmacies' net liabilities, an estimated $2.5 million, and would pay the vendors up to $4,057,733 in cash and shares.
Premier Health's CEO, Dr. Essam Hamza, outlined the benefits of the acquisitions. Premier's physicians and patients now have easier access to pharmacy services. The added pharmacies will help improve prescription fulfillment. They are "instrumental to our telemedicine app as they will enable team-based practices and concentrate services around a patient's specific healthcare needs," he said in the release. Also, now Premier could open a medical or cannabis clinic inside one of the pharmacies.
The two acquired pharmacies, both cash flow positive, posted a combined revenue of about $6 million for the fiscal year that ended Aug. 31, 2018. Together, their cost of goods sold and operating expenses was about $5.44 million during the same period.
The pharmacies' management teams will stay on and continue running the businesses.
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