Delic Holdings Corp. (CSE: DELC) announced this morning that it has completed the acquisition of Ketamine Wellness Centers Arizona LLC. The aggregate purchase price for the transaction is US$10 million.
The acquisition price is composed of US$5 million in multiple voting shares at US$0.1658 per share and US$10 million in cash. The latter is scheduled to be paid with approximately US$3.3 million on closing date, US$0.3 million upon the forgiveness of Ketamine Wellness’ loan from The Health Resources and Services Administration, US$ 0.75 million after 12 months following the closing date, and the remaining US$0.75 million after 24 months.
In addition, members of the Arizona-based limited liability corporation are eligible to receive additional Delic shares worth US$0.1 million upon each new Ketamine Wellness clinic opened that will satisfy the revenue requirement for three months.
The wellness center chain reported 2020 revenue north of US$3.3 million and is reported to be on track to post US$4.5 million in revenue for 2021. It currently operates 10 ketamine infusion treatment clinics across Arizona, Colorado, Florida, Illinois, Minnesota, Nevada, Texas, Utah, and Washington.
The company reported that upon the closing of the transaction, its revenue run rate is expected to be approximately US$11.0 million.
Delic Holdings last traded at $0.22 on the CSE.
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