Empower Clinics Inc has completed the acquisition of Medi+Sure Canada Inc in a move which it said fits seamlessly into its North American e-commerce and distribution strategy.
The C$3.5 million cash and stock deal was struck in July with Mario Cortis, MediSure’s sole shareholder.
MediSure produces affordable, quality diabetes products that bring economic value to the diabetes testing market while delivering world-class training and educational support to those living with the disease. Empower said its established pharmacy footprint in Canada aligns with its growth strategy of working with and supporting pharmacies and the communities they serve.
According to Empower, diabetes was responsible for approximately 1.5 million deaths in 2019 and the number of people impacted by the disease escalated from 108 million in 1980 to 422 million in 2014. The company noted that effective management of diabetes is possible, which is why high-quality, affordable MediSure diabetic blood glucose meters and test strips are critical to effective ongoing treatment for patients and payers alike.
“We will be immediately applying for FDA approval and expanding to the US market to dramatically enhance the business model of MediSure, maximizing its potential for the company, our shareholders and those suffering from this chronic disease,” Empower chairman and CEO Steven McAuley said in a statement.
“We also will expand product lines and introduce MediSure to our extensive pharmacy network," he added.
Under the terms of the deal, Cortis will receive a cash payment of $1.25 million, of which $250,000 will be held back for 12 months to satisfy any potential contingent liabilities, as well as an aggregate of 4,582,483 Empower common shares at a deemed price of $0.491 per share.
“We are frankly pumped to become a part of this strong, professional team of people led by Steve, who truly care about the health of people who live with chronic diseases,” Cortis said. "We believe that with Empower's resources, strategies and support, we will dramatically scale our business and make continued positive impacts on the healthcare industry in Canada and beyond."
Empower is an integrated healthcare company that provides body and mind wellness for patients through its clinics, with digital and telemedicine care, and world-class medical diagnostics laboratories. Supported by an experienced leadership team, Empower is aggressively growing its clinical and digital presence across North America.
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