TORONTO–(BUSINESS WIRE)–Mednow Inc. (“Mednow” or the “Company”) (TSXV:MNOW;OTCQB:MDNWF), Canada’s on-demand virtual pharmacy, is pleased to announce the Company has signed an investment agreement (the “Investment Agreement”) to acquire an equity interest in Life Support Mental Health Inc. (“LSMH”). Pursuant to the Investment Agreement, Mednow invested $500,000 for an initial equity interest of 9%. Mednow has agreed to invest an additional aggregate total of $1,000,000 in two separate tranches to potentially bring its equity interest to approximately 18% upon LSMH’s achievement of certain milestones.
“Mental health services are a logical extension of our platform and this investment is a first step towards providing mental health solutions to our client base. Mednow’s investment in LSMH will act as a catalyst to support the establishment of these health and wellness services”
Mednow’s strategy is to develop a digital interdisciplinary model of care. Anchored in pharmacy and supported by telemedicine, other complementary health care services are planned to provide a full spectrum health care ecosystem. The Company intends to continue to build a holistic approach to patient care.
“Mental health services are a logical extension of our platform and this investment is a first step towards providing mental health solutions to our client base. Mednow’s investment in LSMH will act as a catalyst to support the establishment of these health and wellness services,” said Karim Nassar, Chief Executive Officer.
LSMH is a medical technology company focused on bridging the gap between medical and mental health professionals through clinical support in the assessment and triage of mental health issues. LSMH will use the proceeds of Mednow’s investment to further develop its Mental Health Check platform, enhance its service offering and drive revenue growth.
Letter of Intent to Acquire a Medical Operation
Mednow is also pleased to announce that it has entered into a non-binding letter of intent to acquire a medical business (the “Medical Operation”) based in Ontario by way of a purchase of all the issued and outstanding shares of the Medical Operation. The consideration for the shares shall be paid in cash and is expected to have an earn-out aspect. Once a binding agreement is executed, the Medical Operation is expected to add complementary services and contribute to Mednow’s growing user base. Subject to approval from the board of directors of the Company and the Company’s completion of due diligence, Mednow and the vendors intend to enter into a definitive agreement.
About Mednow Inc.
Mednow is a healthcare technology company offering virtual access with exceptional care. Designed with access and quality care in mind, Mednow.ca provides virtual pharmacy services with convenience and through an interdisciplinary approach to healthcare that is focused on the patient experience. Pharmacy services include free at-home delivery of medications, a user-friendly interface for easy upload, transfer and refill of prescriptions, access to healthcare professionals through an intuitive chat experience, a specialized PillSmart™ system that packages prescriptions and vitamins by date and time, as well as access to telemedicine.