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Irwin Naturals (CSE:IWIN) starts rollup of psychedelic mental health clinics

Psychedelics
CSE:IWIN
09 February 2022 16:15 (EDT)
Irwin Naturals - Klee Irwin, CEO & Chairman.

Source: Irwin Naturals Inc.

Irwin Naturals Inc. (IWIN) has taken the first step in the execution of its ketamine clinic rollup strategy.

This is a move Irwin says is motivated by an intention to become the world’s largest chain of psychedelic mental health clinics.

This first acquisition target is Midwest Ketafusion in Iowa City, Iowa.

Irwin Naturals Emergence, a wholly-owned subsidiary of Irwin, and the shareholders of Midwest Ketafusion, LLC have entered into a definitive agreement dated February 7, 2022, pursuant to which Irwin Emergence will acquire all of the issued and outstanding securities of Ketafusion.

Irwin’s CEO, Klee Irwin remarked on the acquisition.

“The leadership showed by Ketafusion in this space, and the access to the care they are providing their fellow Iowans make this first upcoming acquisition in our national roll-up all the more exciting.”

“Additionally, with a large proportion of the consideration being back-end loaded and earn-out based, the sellers, who will remain with the business, are aligned with our shareholders’ interests,” added Irwin.

Irwin continued,

“We see ourselves as gaining the national brand first-mover advantage and will be leveraging our brand equity and status as a cult brand to expand rapidly as society embraces the psychedelic mental health revolution.”

“With nearly 80 per cent of US households familiar with the trusted Irwin brand, it will be the welcome face of a familiar friend in a crowd of strangers – making this lifesaving solution a bit less intimidating to those in need,” concluded Irwin.

Founder and CEO of Ketafusion, Charlie Hong commented, “What impressed us about Irwin’s’ approach to America’s mental health crisis is their philosophy of using their existing national scale to drive down patient costs, while being profitable at all stages of the expansion,” added Hong.

The shareholder of Ketafusion will be eligible to receive additional consideration based on certain conditions. If in the first five years after closing, Ketafusion earns an adjusted EBITDA of USD $1 million during a calendar year in the allotted period, Ketafusion would receive Irwin shares having an aggregate value of USD $5 million.

Midwest Ketafusion is an infusion clinic that offers intravenous (IV) ketamine for the treatment of depression, PTSD, OCD, anxiety, bipolar disorder, migraines, and multiple chronic pain conditions such as complex regional pain syndrome (CRPS), reflex sympathetic dystrophy (RSD), and fibromyalgia.

Irwin Naturals Inc. is a household name and best-in-class herbal supplement formulator since 1994 that is leveraging its brand to enter the cannabis and psychedelic industries.

Irwin Naturals Inc. (IWIN) is down 5.26 per cent, trading at C$3.60 at 1:24 pm EST.

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