Quick Take: Levitee Labs has acquired BlockMD, a telemedicine platform for patients with substance abuse disorders in western Canada.
Levitee Labs Inc. (CSE: LVT) (the “Company” or “Levitee”), a biotechnology company with a diversified portfolio of healthcare and wellness assets, is pleased to announce that it has completed the acquisition of all the issued and outstanding shares of telemedicine company BlockMD Ltd. (“BlockMD”) as of July 27, 2021.
BlockMD is the leading telemedicine platform used by patients with substance use disorders to access doctor services across Alberta. In 2020, BlockMD was distinguished as the first company to receive authorization from the province of Alberta for telemedicine prescriptions. Over the past 12 months, BlockMD has conducted over 20,000 virtual patient visits, making it a market leader in addiction telemedicine services nationally.
“We are extremely excited to close the acquisition of this critical piece of infrastructure that advances our strategy as a comprehensive provider of addiction treatment solutions,” “This acquisition is synergistic with other more traditional healthcare assets we are targeting, and will help position us as a top care provider to individuals, regardless of their physical location”
Pouya Farmand, CEO of Levitee Labs.
Levitee Labs intends to integrate this platform into future clinic and pharmacy acquisitions to facilitate expansion into new geographies and markets where addiction and mental health treatment is currently lacking or unavailable.
In consideration for the acquisition of BlockMD, the Company issued $1,475,000 in shares at a deemed price of $0.43 per common share on the closing date, for a total of 3,430,871 shares. As part of the transaction, a downside protection mechanism has also been agreed to, where if the trading price of Levitee’s shares on the Canadian Securities Exchange (the “CSE”) is less than the issue price of the shares related to the transaction 4 months and 1 day from the closing date, then the Issuer shall make a cash payment to BlockMD in an amount equal to the difference between the value of the shares at the closing date, and the value of the shares 4 months and 1 day following the closing date.
About Levitee Labs
Levitee Labs is establishing itself as a leader in the integrative wellness space. Through leveraging an M&A regimen that focuses on the centralization of complementary integrative wellness assets, Levitee Labs aims to transform mental health and addiction treatments through the integration of psychedelic medicines and therapies.