TORONTO, ONTARIO, August 17, 2021 – NeuPath Health Inc. (TSXV:NPTH), (“NeuPath” or the “Company”), owner and operator of a network of clinics that deliver category-leading treatment for chronic pain, as well as spinal injuries, sports-related injuries, and concussions, is pleased to announce that it has closed the previously announced acquisition of KumoCare.
KumoCare’s proprietary virtual care platform allows physicians, personal support workers and allied health providers to see patients via telemedicine and in-home. There are numerous benefits to NeuPath from this transaction, including:
• Reduced wait times with more efficient and easy access for patients and their physicians alike;
• Drives a new revenue line for NeuPath across all of NeuPath’s offerings;
• The ability to provide care beyond the physical constraints of clinic locations and hours;
• Seamless integration with health card validation and payment processing; and
• The ability to add new business lines over time, powered by the KumoCare platform.
“We’re looking forward to working with KumoCare to build on our current virtual care capabilities,” stated Grant Connelly, CEO of NeuPath. “Patients and employees are increasingly embracing and, in some cases, demanding access to virtual care. In addition, a survey conducted for NeuPath by a media outlet found that almost 70% of 283 respondents would like to have access to a consultation with a chronic pain practitioner. Adding KumoCare’s virtual care platform to our service offering will allow us to improve access to care for patients and improve the patient experience while also adding new lines of business.”
Under the terms of the definitive agreement and in consideration for the purchase of 100% of the issued and outstanding shares of Aidly Inc. the owner of KumoCare, NeuPath has agreed to pay total consideration of up to $1.5 million subject to a net working capital adjustment and other customary adjustments, payable as follows: (i) $1.0 million paid in NeuPath shares at an issue price of $0.70 per share; and (ii) additional cash consideration of up to $0.5 million, based on the achievement of certain operational targets.
NeuPath is a vertically integrated health care provider utilizing research, data-driven insights, technology, and interdisciplinary care to help restore function for patients impacted by chronic pain, spinal injuries, sport-related injuries, and concussions. With equity ownership in fifteen clinics in Ontario and Alberta, NeuPath is building out a large-scale network to better serve patients across Canada and the United States. NeuPath is focused on transforming the hope of a better life into the reality of a life more fully lived.
This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, the execution of the Company’s expansion strategy in 2021, including the build out of the Company’s virtual care platform are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations included in this news release include, among other things, the severity, duration and spread of the COVID-19 outbreak, as well as its direct and indirect impacts that the pandemic may have on the Company’s operations, adverse market conditions, risks associated with obtaining and maintaining the necessary governmental permits and licenses related to the business of the Company, increasing competition in the market and other risks generally inherent in the chronic pain, sports medicine, concussion and workplace health services markets. A comprehensive discussion of these and other risks and uncertainties can be found in the Company’s annual information form dated March 25, 2021 filed on SEDAR under the Company’s profile at www.sedar.com.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.
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