VANCOUVER, British Columbia, Sept. 10, 2019 /PRNewswire/ — Sunniva Inc. ("Sunniva") (CSE:SNN, OTCQB:SNNVF) and The Clinic Network Canada, Inc. ("TCNC") are pleased to announce that they have entered into a share purchase agreement dated September 10, 2019, pursuant to which Sunniva has agreed to sell Natural Health Services, Ltd. ( "NHS") to TCNC, one of Canada's largest provider of 'out-of-hospital' chronic pain management services, for CAD $9.0 million (the "Purchase Price") subject to customary working capital adjustments at Closing.
The Purchase Price will be paid by way of CAD $4.5 million in cash and CAD $4.5 million of security consideration through the issuance of 4,500,000 preferred shares of TCNC. Closing is anticipated to occur in the fourth quarter of 2019.
NHS operates 7 medical cannabis clinics in Alberta, Saskatchewan, Manitoba and Ontario with dedicated physicians with an additional 10 clinics participating in its Affiliate clinic programs across Canada.
TCNC offers a comprehensive range of interdisciplinary medical services, as well as medical devices and products – including medical cannabis – for patients suffering from chronic pain. TCNC currently provides its services and products through a network of 12 community-based clinics in Alberta, Manitoba, Ontario, and Quebec.
"The sale of NHS to TCNC will complete the previously announced disposition of our Canadian operating assets and is in line with our previously announced strategy of focusing on the advancement of our California assets and expanding our sales and distribution infrastructure within the state."Dr. Anthony Holler, CEO of Sunniva Inc.
Holler went on to say that "we believe that the adoption of medical cannabis into the mainstream treatments for chronic pain and the combined TCNC platform represents a very good fit for the NHS assets. The cash proceeds from this sale will be directed towards the completion of the Cathedral City facility and the ongoing development of our cannabis brands in California."
"We are excited to have reached an agreement to purchase Natural Health Services from Sunniva," Mike Steele, CEO of Cura-Can Health Corp. stated. "We have been actively expanding our chronic pain clinic network and the NHS clinics not only expands our presence across Canada, it strengthens our service and product offerings for Canadian patients living with chronic pain. We believe that this acquisition will allow us to integrate TCNC's industry-leading, specialist driven pain and harm reduction services and products to all Canadians suffering from Chronic pain, while continuing to strive to maximize shareholder value."