Delic Holdings (DELC.C) announced they have signed a definitive agreement to acquire Ketamine Infusion Centers (KIC).
Delic will acquire all of the issued and outstanding shares of KIC from its shareholders in a reverse triangular merger for a purchase price of $3.05 million USD, which will be paid in two installments. The first will be $2.25 million USD in consideration shares to be issued on the closing date and the second is $800,000 USD in consideration shares to be issued on the date KIC’s Bakersfield clinic achieves a net profit in three consecutive months in the twelve months following the closing date, while also achieving minimum revenues of $125,000 USD.
Delic will acquire all of the issued and outstanding shares of KIC from its shareholders in a reverse triangular merger for a purchase price of $3.05 million USD, which will be paid in two installments.
Additionally, Sonny Diaz, Rogelio Monzon, and Ganesh Acharya each entered into a milestone agreement whereby they may each receive their pro rata proportion of an amount equal to $150,000 USD for each new KIC clinic which is cash flow positive for three months with revenue of at least $175,000 USD.
“We were thrilled to be joining the DELIC platform as we feel their patient acquisition strategy – using DELIC’s media platform to drive patients – is a game changer for scaling our clinics and expanding patient access. With a history of profitability and a management team with decades of experience in the health sector and successful exits of over two dozen clinics and hospitals, KIC’s extensive background in operating clinics and hospitals will enable DELIC to be the leader in legal psychedelic treatment clinics,” stated Sonny Diaz, Co-Founder of KIC.
Last month, KIC announced they were doubling the number of clinics they operate by adding two new clinics in Arizona, bringing the number of clinics they operate to four. Back in February, when DELC first announced their plans to acquire KIC, they had brought in ~$1.5 million from their two clinics in Phoenix, Arizona and Bakersfield, California, which oversaw 4,000 treatments.
Last month, KIC announced they were doubling the number of clinics they operate by adding two new clinics in Arizona, bringing the number of clinics they operate to four.
This acquisition comes only two weeks after Delic acquired CBDV, which is now operating as Delic Labs, which DELC hopes will function as the engine for the Delic platform. Delic Labs is able to conduct research and develop intellectual property on psilocybin because of their Section 56 exemption from Health Canada. CBDV was acquired for $7 million worth of DELC stock.
“We publicly listed DELIC with the intent of buying cash-flowing, scalable companies and that is exactly what KIC represents. We are focused on making psychedelic wellness truly accessible, and this is a huge development in the realization of that vision,” commented Matt Stang, Founder and CEO of Delic.
Following the news, DELC shares are down 1 cent and are currently trading at $0.32.
Full Disclosure: Delic Holdings is an Equity Guru marketing client.