Premier Health acquires two operating pharmacies in Metro Vancouver

|About: Premier Health Group Inc. (PHGRF)|By:, SA News Editor

Premier Health (OTCPK:PHGRF) announces that it has entered into a share purchase agreement to acquire two Metro Vancouver based pharmacies with certain arm's-length vendors.

The pharmacies were cash flow positive and had combined annual revenue of ~$6M for the fiscal year ended August 31, 2018. The associated cost of goods sold and operating expenses incurred was ~$5.44M on a combined basis.

Under the terms of the Agreement, in consideration for the purchase of all the outstanding shares of the pharmacy companies from the Vendors, Premier will assume the net liabilities of the pharmacies estimated at ~$2.5M and pay to the Vendors up to ~$4.06M, of which $1.31M will be in cash; 3,432,384 common shares of the Company at a deemed price of $0.7269 per share; and 343,926 performance share units of the Company.

Company expects to complete the acquisition during the 2Q19.

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