Small-Cap Psychedelic Wellness Company Makes First Acquisition: Ketamine Infusion Centers
Source: Streetwise Reports
February 5, 2021 (Investorideas.com Newswire) DELIC aims to become a leader in psychedelic health and wellness clinics.
Delic Corp. (DELC:CSE; DELCF:OTCQB) just announced that it has signed a binding letter of agreement to acquire Ketamine Infusion Centers LLC (KIC), its first acquisition. KIC operates two treatment centers, one in Phoenix, Ariz., and one in Bakersfield, Calif. DELIC reported that "supported by clinical trials and peer reviewed studies, ketamine infusions has emerged as a promising treatment option for chronic diseases and pain disorders."
The company noted that over the last three years Ketamine Infusion Centers has expanded, adding its Bakersfield clinic, and has overseen 4,000 treatments to date.
Matt Stang, founder and CEO of DELIC, commented, "We publicly listed DELIC with the intent of buying cash-flowing, scalable companies and that is exactly what KIC represents. KIC management has decades of experience in the health sector and has successfully scaled and exited over two dozen clinics and hospitals. KIC's extensive background in operating clinics and hospitals better enables DELIC to be the leader in ketamine clinic rollouts, ensuring that our patients receive the best medical treatment and care. We intend to use this best-practices methodology, such as an insurance reimbursement program, to scale-out our clinic footprint throughout the country."
Sonny Diaz, co-founder of KIC, stated, "Our management team has been in the clinic and medical business for 15 years scaling and operating. We jumped on the opportunity to join DELIC as we feel the patient acquisition strategy-using DELIC's media platform to drive patients-is a potential game changer. We think there is an opportunity to scale our SOPs and clinics over the next 18 month to be the national leader in the space."
DELIC noted several highlights of the transaction:
- "The Transaction establishes DELIC as a diversified psychedelics organization. KIC has been growing steadily with revenues in excess of USD$1.5 million since 2019
- KIC will be Strategically Positioned to Leverage DELIC Platform and Brand: DELIC expects to drive patients to KIC through its media platform and become a national leader
- Established History of Providing Ketamine Infusion Services. The management team at KIC has been in business for 3 years expanding services throughout the United States
- Management Expertise. The acquisition of KIC will add a team of 6 medical professionals and employees bringing a wealth of industry experience and knowledge to DELIC"
The company is evolving from an information hub. "By acquiring KIC, DELIC expands from being a central hub of psychedelic education, media, and information to being able to provide patients with psychedelic therapy. DELIC is uniquely positioned to provide the ability to bring digital awareness to its various holdings under the DELIC umbrella, and drive online users to our brick and mortar holdings, including KIC’s physical psychedelic clinics," the company noted.
DELIC has agreed to issue subordinate voting shares in the capital of Delic to the members of KIC in the value of US$2.25 million. The total number of shares will be based on the volume weighted average trading price the 10 days before the closing of the transaction. Additional shares with a value of up to US$800,000 will be issued based on the milestone of the Bakersfield clinic posting three consecutive months of profitability and minimum revenue of US$125,000 during the 12 months following the closing of the transaction.
In addition to Ketamine Infusion Center, DELIC currently has runs a revenue generating e-commerce lifestyle brand named "The Delic"; a free public education platform providing psychedelic guides, news and culture known as "Reality Sandwich" that offers more than 5,000 articles and other content; and "Meet Delic," a biannual psychedelic wellness summit with the first set for Los Angeles in May 2021.
DELIC was formed in 2019 "to address the growing interest in psychedelic wellness backed by science," the company stated.
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Delic Corp. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Delic Corp., a company mentioned in this article.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com