Delic Holdings (DELC.C) announced today that it has completed the acquisition of Ketamine Infusion Centers (KIC). Currently, KIC owns and operated two ketamine infusion treatment clinics, one in Phoenix, Arizona and the other in Bakersfield, California.
“When we announced the KIC transaction it was to under the premise of adding cash-flowing, scalable companies to round out the rest of the ecosystem on our platform, and that is what this closing will realize…The DELIC team is committed to making psychedelic wellness accessible to the masses and with this chain of clinics we are making that vision possible,” said Matt Stang, Founder and CEO of DELIC.
A few things come to mind when I think about ketamine including a bad time, horses, and SpongeBob SquarePants – don’t ask why. However, ketamine isn’t actually all that bad when administered by medical professionals at suitable doses. In fact, clinical trials and peer reviewed studies support intravenous ketamine infusions as a promising treatment option for chronic diseases and pain disorders.
In particular, a case report by the Department of Neurology at the University of Arizona, indicated excellent tolerability and safety of ketamine. During this study, five patients received ketamine infusion treatment for intractable back pain due to severe lumbar degenerative disk disease. In all five cases, patients saw dramatic reductions in dyskinesia, which refers to involuntary movement induced by Levodopa, a common treatment for Parkinson’s disease.
“Today’s closing ensures we can execute on our growth strategy of leveraging DELIC’s media properties to drive patient acquisition…This closed ecosystem of media properties, a lab to produce high-quality and innovative products, and a national chain of health clinics at the center is a game changer for scaling psychedelic wellness. KIC’s history of profitability and our management team with decades of experience in the health sector and successful exits of over two dozen clinics and hospitals will enable DELIC to be the national leader in legal psychedelic treatment,” stated Sonny Diaz, Co-Founder of KIC.
Having completed its acquisition of KIC, Delic now has a physical retail footprint of health clinics in the ketamine infusion treatment market. This will enable the Company to leverage its IP, product development and audience capture through its various leading media properties. In doing so, Delic intends to drive digital awareness and online users to its KIC brick and mortal clinics.
Keep in mind, KIC has been growing steadily with revenues in excess of USD$1.5 million since 2019. Furthermore, KIC plans to double its current clinic footprint to four physical locations in California and Arizona. The acquisition of KIC will also add a team of 6 medical professionals and experienced employees to DELIC’s team. With this in mind, KIC represents an invaluable asset for DELIC, as the Company sets its foot in the upcoming ketamine infusion treatment market.
Delic acquired all of the outstanding securities of KIC from its members in a reverse triangular merger for a purchase price of up to USD$3,050,000.
Delic’s share price opened at $0.29, up from a previous close of $0.28. The Company’s shares are up 1.79% and are currently trading at $0.285. Delic’s share price has increased noticeably since July 5, 2021.
Full Disclosure: Delic is a marketing client of Equity Guru.