Champignon Brands Inc. - CEO, Dr Roger McIntyre
CEO, Dr Roger McIntyre
Source: Canada.com
  • Champignon Brands (CSE:SHRM) has executed a term sheet to acquire the Wellness Clinic of Orange County, a ketamine treatment centre
  • The centre is located within the Mission Hospital’s Laguna Beach campus, and forms part of Champignon’s North American expansion plan
  • It is currently engaged in ketamine infusion therapy, in addition to research and complementary treatment protocols
  • Champignon will acquire the centre for approximately C$841,000, as well as up to 1.5 million common shares
  • Champignon Brands (SHRM) is currently up 15.15 per cent to $1.14 per share, with a market cap of $181.64 million

Champignon Brands (CSE:SHRM) has executed a term sheet to acquire the Wellness Clinic of Orange County, a ketamine treatment centre.

Located within the Mission Hospital’s Laguna Beach campus, the Wellness Clinic operates a state-of-the-art ketamine infusion treatment centre. It is considered an authority in the space, and also conducts research programs as well as complementary treatment protocols.

Intravenous ketamine therapy is supported by a wide range of peer reviewed studies, as well as several clinical trials. It’s thought that the method can act as a promising treatment option for a variety of chronic diseases, such as depression, anxiety, post-traumatic stress disorder, fibromyalgia and certain other pain disorders.

Dr Michael Bronson, a representative from the Wellness Clinic of Orange County, said he is excited for the centres patients, both current and future.

“This is an exceptional opportunity to both collaborate and scale with Dr McIntyre and the world-class team at Champignon; with the objective of remaining at the forefront of innovation in this bourgeoning field,” he added.

Under the term sheet, Champignon will acquire 100 per cent the centre for a total of C$841,000, as well as up to 1.5 million common shares in the company.

The cash component and 1 million shares will be payable on closing. However, the shares will be subject to a 12-month escrow period, with 500,000 released six months after the date of closing and the remaining 500,000 released six months after that.

A further 500,000 common shares may be payable to the vendors of the Wellness Clinic. However, these will only be issued once the clinic collects top-line revenue of $2,102,745 over an 18-month period from the date of closing.

Dr Roger McIntyre, Champignon Brands’ newly appointed CEO, said he is thrilled to begin executing on the company’s North American expansion strategy.

“This acquisition represents a major milestone as we begin to accelerate our vision of establishing significant scale and a sizeable footprint of integrated ketamine centric clinics committed to providing innovative care and therapeutic options to improve the quality of life of patients suffering from chronic disease states that have failed conventional treatments,” he concluded.

Champignon Brands (SHRM) is currently up 15.15 per cent to $1.14 per share at 1:04pm EDT.

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