NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Toronto – May 27, 2021 (CNW) – Canada House Wellness Group (CSE: CHV) (“Canada House” or the “Company”), a fully integrated medical cannabis company, announced today the acquisition by its wholly owned subsidiary, Canada House Clinics Inc. (“CHC”), of Margaree Health Group Inc. (“Margaree”). Margaree is a medical cannabis clinic dedicated to Veterans in Nova Scotia. Margaree patients will be served by the Halifax clinic of CHC.
CHC was founded in 2013 by Veterans who understood how medical cannabis could aid in effectively treating many post-combat conditions and illnesses such as post-traumatic stress syndrome (PTSD) and chronic pain. CHC continues to improve its support for Veterans with expert guidance for medical cannabis, helping Veterans navigate their benefits, providing a supportive environment and sponsoring positive experiences for Veterans.
Margaree services over 350 Veterans in Nova Scotia to provide education, required cannabis medical documents and associated treatment plans. It was created when the leadership team of True North Psychological Services (“True North”) desired a better cannabis clinic to refer its valued Veteran patients. Margaree patients order approximately $1.5M of medical cannabis annually.
CHC purchased 100% of the issued and outstanding shares of Margaree for cash consideration of $500K and a three year earn out measured against Margaree’s revenue during the earn out period. CHC has also committed to further increase its contributions to veteran causes both through the Not-for-Profit Post Traumatic Growth Association, and also additional programs. CHC is pleased to announce a $10K donation to Veteran Voices of Canada which is working on the 158 Tribute to honor the 158 Canadian soldiers who lost their lives in Afghanistan.
CHC has achieved sustained profitability since October 2019 and grown from serving 2,000 Veterans in early 2018 to almost 3,300 prior to the acquisition of Margaree. With close to 6,000 active patients, CHC has annualized revenues of over $5M and manages over $27M in annual medical cannabis purchases. CHC will be able to absorb Margaree’s patient base into its existing operations while continuing to provide specialized services for Veterans and excellent client care.
“We are proud of our continued support to Veterans and our resulting steady business growth” commented Alex Kroon, President Canada House Clinics. “We look forward to helping Margaree patients and working with True North professionals as a choice for their Veteran patients who could benefit from medical cannabis.”
Dr. Mark Johnston leads True North and added, “True North is focused on Veteran mental health, and since 2019 we’ve also donated more than $60,000 to charity. We believe we have a responsibility to both causes. True North spoke to several groups about potentially taking over Margaree’s cannabis prescribing; CHC really impressed us with their Veteran focus, and their willingness to donate to Veteran causes. They are clearly the best choice to take over Margaree. We look forward to working with the CHC team in Nova Scotia.”
About Canada House Wellness Group
Canada House Wellness Group is the parent company of Abba Medix Corp., a Licensed Producer in Pickering, Ontario that produces high quality medical grade cannabis; IsoCanMed Inc., a Licensed Producer in Louiseville, Québec growing best-in-class indoor cannabis, in its 64,000 sq. ft. production facility employing state-of-the-art vertical, aeroponic production methodologies; Canada House Clinics Inc., with clinics across the country that work directly with primary care teams to provide specialized cannabinoid therapy services to patients suffering from simple and complex medical conditions; and Knalysis Technologies, a provider of fully customizable, cloud-based software that links physician, provider, and patient to data that supports treatment with medical cannabis.
Canada House Wellness Group’s goal is to become the leading cultivator of premium craft cannabis and provider of cannabinoid therapy, targeting the medical cannabis markets globally. Please visit www.canadahouse.ca or the Company’s public filings at www.sedar.com.
For further information, please contact:
Steven Pearce, Vice-President, Legal
Canada House Wellness Group 289-980-3584
Cautionary Statement Regarding Forward-Looking Information. This press release contains forward- looking statements, including statements that relate to, among other things, the Company’s clinic, production and technology businesses, its future plans, the Company’s markets, objectives, goals, strategies, intentions, beliefs, expectations and estimates, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “objective” and “continue” (or the negative thereof) and words and expressions of similar import. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Material assumptions used to develop forward-looking information in this news release include, among other things, the regulations related to cannabis use under the Access to Cannabis for Medical Purposes Regulations and the act respecting cannabis and to amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts, passed by the Canadian Federal government, making cannabis and cannabis based edibles, vapes and oils legal for recreational use on October 17, 2018 and October 17, 2019; Company liquidity and capital resources, including the availability of additional capital resources to fund its activities; level of competition; the ability to adapt products and services to the changing market; the ability to attract and retain key executives; and the ability to execute strategic plans. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis under “Risk and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.