- Represents Centric Health's Strategic Investment in Wellness and
Preventative Healthcare -
TORONTO, Oct. 8 /CNW/ - Centric Health Corporation (TSX: CHH), a diversified healthcare company, today announced that it has entered into an agreement to form a strategic alliance with PrevCan, Inc. ("INTERxVENT Canada"). INTERxVENT Canada is focused on wellness, prevention, lifestyle and disease-management programs that offer innovative technologies with advanced outcome reporting and mentorship modules focusing on nutrition, physical activity, weight management, stress management, tobacco cessation and diabetes management. The alliance will enhance Centric Health's partnership with healthcare professionals; expand the presence of INTERxVENT in Canada and internationally; and consequently augment Centric Health's product and service offering, revenue streams and, ultimately, return on investment.
"With a global focus on spiraling healthcare costs, all countries are now seriously embracing wellness and preventative programs to contain costs and better manage chronic conditions that accompany longevity," said Dr. David Alter, Chief Scientific Officer, INTERxVENT Canada. "Over ninety-five percent of worldwide healthcare costs are spent on treating illness. There is no doubt that there is overwhelming scientific evidence supporting the social, economic and health benefits of prevention over cure."
"The scientifically validated platform has been developed over more than a decade and is actively being rolled out, customized and applied across a range of corporations in Canada, the USA and internationally," said Dr. Saul Quint, Chief Executive Officer, INTERxVENT Canada. "Healthier employees unequivocally translate into lower healthcare costs, higher productivity and an overall better quality of life."
Centric Health, through Alegro Health Partners, will make a mandatorily convertible loan of $2 million to INTERxVENT Canada during 2010 and 2011 subject to certain terms and milestones. Absent an event of default, conversion will result in Centric Health owning between a minimum of 20% and a maximum of 32% of the fully diluted shares of INTERxVENT Canada linked to it achieving an EBITDA of $2 million for the financial year ending December 31, 2011. As a condition of this alliance, key INTERxVENT Canada management and existing shareholders will invest a further $500,000 on the same terms and conditions. In addition, current INTERxVENT Canada shareholders will be granted a total of one million Centric Health Warrants exercisable over a five year period subject to certain performance criteria. While the organizations are already working together, the effective date of the transaction will be January 4, 2010, subject to certain conditions precedent and milestones being achieved.
"The market for health and wellness programs is currently estimated at $1.2 billion in Canada alone, and is expected to double in the next three to five years," said Dr. Jack Shevel, Interim President and Chief Executive Officer, Centric Health. "This transaction complements and benefits Centric Health's expansion strategy to establish MultiCare Centres and other business units in partnership with healthcare professionals, thereby offering our patients a quality lifestyle."
About INTERxVENT Canada
INTERxVENT Canada offers comprehensive, scientifically validated and personalized lifestyle and disease-management programs to both prevent and manage specific diseases and associated complications. These are provided to healthcare professionals, corporations, pharmaceutical companies and patients through risk assessments, proprietary algorithms, scientific databases and proprietary biometric data-integration and medication-compliance modules that help identify and manage employees' health needs and risk factors. Baseline evaluations cover medical status, medication use, risk factors for chronic diseases, lifestyle practices, readiness and compliance. Participants receive a step-by-step guide to lifestyle and disease management including individualized goals and action plans, summary reports for their physician, educational kits, and one-on-one home-based counseling sessions from a team of qualified and certified healthcare professionals. Proven results using INTERxVENT Canada's technology include:
- Improved lifestyles
- Weight management
- Stress relief
- Decreased medical costs
- Reduced likelihood of heart attacks
- More than 30% success rate on tobacco cessation program
- Furthering of personal health goals without medication
INTERxVENT Canada has the exclusive Canadian rights to the INTERxVENT intellectual property and technologies owned by Nationwide Better Health(SM), a subsidiary of Nationwide(R). In addition, INTERxVENT Canada has developed proprietary biometric and drug safety and compliance modules together with Gamma-Dynacare Medical Laboratories and other third parties that have been integrated into the INTERxVENT Canada product. For further information, please visit www.intervent.ca.
About Centric Health
Centric Health's vision is to be Canada's premier healthcare company, providing innovative solutions centered on patients and healthcare professionals. As a diversified healthcare company with investments in several niche service areas, Centric Health currently has operations in medical assessments, disability and rehabilitation management, physiotherapy and hospital services. With knowledge and experience of healthcare delivery in international markets and extensive and trusted relationships with payers, physicians, and government agencies, Centric Health is pursuing expansion opportunities into other healthcare sectors to create value for all stakeholders with an unwavering commitment to the highest quality of care. Centric Health is listed on the TSX under the symbol CHH. For further information, please visit www.centrichealth.ca.
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Centric Health and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits Centric Health will derive there from.
Non-GAAP Measure: The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is not a recognized measure under Canadian GAAP. Management believes that in addition to net earnings, EBITDA is a useful supplemental measure, as it provides an indication of performance. One should be cautioned, however, that EBITDA should not be construed as an alternative to net earnings determined in accordance with GAAP. The method of calculating EBITDA may differ from other companies and accordingly, EBITDA may not be comparable to measures used by other companies.
SOURCE Centric Health Corporation
For further information: For further information: Peter Walkey, Chief Financial Officer, Centric Health, (416) 927-8400 ext. 309, firstname.lastname@example.org; Michael Moore, Investor Relations, Equicom Group, (416) 815-0700 ext. 241, email@example.com