Levitee Labs inks letter of intent to buy Calgary compounding pharmacy

12 October, 2021

Levitee Labs inks letter of intent to buy Calgary compounding pharmacy

Under the letter of intent (LOI), the company will pay $306,000 in cash for a 51% stake in the pharmacy

Levitee Labs -
The compounding pharmacy will be used as an initial base for the production and distribution of pharmaceutical products for Levitee Labs

Levitee Labs (CSE:LVT) Inc said it has signed a letter of intent (LOI) to acquire 51% of the issued and outstanding shares in a compounding pharmacy based out of Calgary, Alberta.

The company noted the compounding pharmacy will be used as an initial base for the production and distribution of pharmaceutical products for Levitee Labs, which will include pain and depression management products such as ketamine.

“This will be an important acquisition for Levitee Labs (CSE:LVT) as we direct our research and development efforts into psychedelic medicines for depression, addiction and pain management, including ketamine compounding, which will offer our patients various solutions for their chronic comorbidities,” Levitee Labs (CSE:LVT) chief medical and scientific officer Fady Hannah-Shmouni said in a statement.

READ: Levitee Labs reports revenue growth, supported by ACT acquisition and organic growth

 

“Our continued expansion across Western Canada reaffirms our commitment to mental healthcare delivery through the integration of psychedelic medicines and therapies into a medical home care model,” Hannah-Shmouni added.

As well, the company said it plans to expand operations at the compounding pharmacy by introducing a research laboratory for the development and production of various formulations in this space.

Levitee will pay $306,000 in cash from its current cash reserves for a 51% stake in the pharmacy, equating to about 3.5 times TTM EBITDA (trailing 12-month earnings before interest, taxes, depreciation, and amortization).

It added that the current owner and operator of the pharmacy will join Levitee Labs and assist with operations across Levitee’s Alberta portfolio, which includes five addiction-focused clinics, and three specialized pharmacies.

Levitee Labs is establishing itself as a leader in the integrative wellness space. Through leveraging an M&A regimen that focuses on the centralization of complementary integrative wellness assets, the company aims to transform mental health and addiction treatments through the integration of psychedelic medicines and therapies.

Levitee’s current portfolio of assets includes MONKE Nutraceuticals, a company specialized in developing and distributing premium functional mushroom supplements sold via online portals; ACT Medical Centres, a group of five operating pain and addiction treatment clinics in Alberta; Block MD, the first telemedicine company in Alberta to receive provincial approval for telemedicine prescriptions in the addiction treatment space; three pharmacies operating in Alberta specialized in filling prescriptions for patients with substance abuse disorders, mental health conditions, and chronic pain; and Earth Circle Organics, a direct-to-consumer and wholesaler of supplements and superfood products with 180-plus SKUs in its product line-up across three brands.

Contact Sean at sean@proactiveinvestors.com

Read more: Levitee Labs Signs Letter of Intent to Acquire Calgary Addiction and Compounding Pharmacy

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