PharmaCorp Closes Acquisitions of Three Pharmacies Across Canada
Executive Summary
- PharmaCorp Rx Inc. completed the acquisition of three community pharmacy businesses—two in Western Canada and one in Eastern Canada—for a total purchase price of $8.7 million.
- The Western acquisitions were funded 75% with cash on hand and 25% with newly issued common shares priced at the VWAP over the ten‑day period preceding closing; the Eastern acquisition was paid entirely in cash and available credit facility funds.
- No finder’s fees were incurred, and the company reaffirmed its intent to continue pursuing additional pharmacy acquisitions.
Key Details
- Western Canada Acquisitions – Two PharmaChoice Canada bannered pharmacies closed; aggregate purchase price $3,400,000 (subject to customary adjustments).
- Funding: 75% cash on hand, 25% issued common shares of PharmaCorp.
-
Share pricing: Deemed price equal to the volume‑weighted average trading price of PharmaCorp’s TSXV shares over the ten‑day period ending three business days before closing.
-
Eastern Canada Acquisition – One PharmaChoice Canada bannered pharmacy closed; purchase price $5,300,000 (subject to customary adjustments).
-
Funding: Entirely cash on hand and available funds under the corporation’s credit facility.
-
No Finder’s Fees were paid in connection with any of the three acquisitions.
-
Strategic Rationale – Expands PharmaCorp’s national footprint, preserves independent pharmacy legacies, and enhances continuity of care for patients across Canada.
-
Future Outlook – Executive Chair Alan Simpson indicated that PharmaCorp intends to remain active on the acquisition front in the coming months, targeting both PharmaChoice‑branded and independently owned pharmacies.
Notable Quotes
“These transactions reflect the continued momentum of our disciplined growth strategy and the strength of our strategic alliance with PharmaChoice Canada,” – Alan Simpson, Executive Chair, PharmaCorp Rx Inc.
Materiality Assessment: Material – Positive (the acquisitions represent a significant expansion of the company’s operating footprint and are expected to positively impact future revenue and market position).