Acquisition Includes Partial Ownership of Sun Clinical Laboratories
PLANO, TX, March 9, 2017 /CNW/ - Alternate Health Corp. (CSE:AHG) (OTC:ATEHF) (the "Company"), a diversified healthcare services company that uses its expertise in technology to revolutionize patient care and service delivery, announced today that it has reached an arms-length agreement to acquire a 20 percent interest in Clover Trail Capital LLC ("Clover Trail"), a Texas-based investment company. The acquisition is valued at US $5.5 million.
Clover Trail's investments include a comprehensive laboratory, performing complex lab studies for both toxicology and blood, servicing hospital groups, private insurance groups and large clinics. The acquisition gives Alternate Health Corp. an ownership in Sun Clinical Laboratories LLC, which is 40 percent owned by Clover Trail, and currently refers toxicology and blood samples to the Company's subsidiary Alternate Health Labs, Inc.
Alternate Health Corp. has operations in the United States and Canada. In addition to laboratory services, it is a leader in proprietary software applications for the medical industry.
"We are delighted to be joining forces with Clover Trail," said Bryan Korba, Chairman and Chief Executive Officer of Alternate Health. "It is an excellent opportunity for us to grow and increase the effectiveness of Alternate Health Labs, already a leading source of revenue for us and a key part of our strategy to fundamentally advance patient care."
The Company funded the acquisition through an issuance of 4,557,150 common shares, subject to a four-month holding period and an 18 month term note of US$ 1,993,750 payable to one of the sellers. After January 2018, the sellers have an option to put additional ownership of Clover Trail to the Company. Any future sales will be at a price based on a valuation by a mutually agreed independent business valuator.
"This is a winning agreement for both companies," said Dr. Michael Murphy, who indirectly controls Clover Trail Capital and recently completed a Lab Development Agreement with Alternate Health. "Our goal is to make healthcare laboratory services more efficient and cost-effective, and with this move we take a major step in that direction."
About Alternate Health Corp.
Alternate Health Corp. is a diversified healthcare company that uses its expertise in technology to revolutionize patient care and service delivery in both traditional and complementary medical fields. With investments in research, education and cutting edge technology, Alternate Health is a leader in software applications and processing systems for the medical industry using proprietary technology platforms. Through its subsidiaries, Alternate Health offers services ranging from medical practice and controlled substance management software to blood analysis and toxicology labs, to clinical research and continuing education programs. Alternate Health's goal is to continue to lead the medical industry with data-driven results in patient care and product development.
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. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations, business prospects and financing plans, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward looking statements.
SOURCE Alternate Health Corp.
For further information: Jim Griffiths, Director of Investor Relations, 416-607-5757