Pharmacorp Rx signs credit agreement with CIBC

Executive Summary

• Pharmacorp Rx Inc. has secured new credit facilities with CIBC, including a $17.5-million acquisition term facility with a $10-million accordion feature and a $3-million revolving operating line, to support its acquisition strategy and platform expansion.
• The company launched a separate $5-million credit facility specifically for its pharmacist co-ownership program, enabling pharmacists to finance up to 100% of their equity investment in Pharmacorp pharmacies with competitive rates and repayment terms up to 15 years.
• Executive Chairman Alan Simpson stated that these facilities remove capital barriers for pharmacists seeking ownership and position the company to scale its co-ownership model and execute acquisitions across Canada.

Key Details

• Acquisition Term Facility: $17.5 million committed, with a $10 million accordion feature allowing for increased borrowing capacity as acquisition opportunities arise.
• Revolving Operating Line: $3 million committed for working capital needs.
• Visa Credit Facility: $1 million included in the overall facilities package.
• Pharmacist Co-Ownership Facility: $5 million separate credit facility designed to address capital access challenges for pharmacists.
• Co-Ownership Terms: Loans available to pharmacists to acquire ownership positions in their respective Pharmacorp pharmacies; financing up to 100% of equity investment; competitive interest rates; repayment terms up to 15 years.
• Strategic Purpose: Facilities support Pharmacorp's acquisition strategy, expansion of acquisition and operating platforms, and scaling of the co-ownership model.
• Current Operations: Pharmacorp currently operates four PharmaChoice Canada bannered pharmacies and plans to acquire both bannered and independently owned non-bannered pharmacies in Canada.
• Ticker Symbol: PCRX (TSX Venture Exchange).

Notable Quotes

• "Pharmacorp's co-ownership financing program removes a significant barrier to ownership. Many talented pharmacists simply don't have the capital or financing options to become true owners. Our program, now backed by CIBC, provides them with a direct path to equity and long-term wealth creation through co-ownership with Pharmacorp. With these expanded credit facilities in place, we are now well positioned to continue to execute acquisition opportunities and to scale our co-ownership model across Canada in the near term." — Alan Simpson, Executive Chairman