AlliancePharma Completes the Acquisition of Elitis Pharma

- June 2nd, 2015

AlliancePharma Inc. (TSXV:APA) announced that it has completed the acquisition of Élitis Pharma Inc., which now makes the company the largest provider of replacement pharmacists in Quebec. The acquisition gives AlliancePharma access to the services of 600 replacement pharmacists and consolidates this service through Quebec, with a share of approximately 76 percent of the market.

AlliancePharma Inc. (TSXV:APA) announced that it has completed the acquisition of Élitis Pharma Inc., which now makes the company the largest provider of replacement pharmacists in Quebec. The acquisition gives AlliancePharma access to the services of 600 replacement pharmacists and consolidates this service through Quebec, with a share of approximately 76 percent of the market.

As quoted in the press release:

The acquisition provides our management team with opportunities that will accelerate the growth objectives of the company while ensuring the level of client service excellence which had made it a success, and ultimately increasing shareholder value.

In consideration for the acquisition of the shares of Élitis, the Company has paid the shareholders of Élitis a cash amount of $2,800,000 on closing the Transaction, financed by the credit facility described below. The Company will also make deferred payments totalling $1,350,000, adjusted as per the terms of the agreement, as more fully described in the news release dated March 7, 2015.

The initial consideration of $2,800,000 for the shares of Élitis is fully financed by a secured credit facility granted to the Company by an arm’s length party on May 27, 2015.

As part of the Transaction, the Company has paid a finder’s fee of 950,000 common shares for the acquisition and 650,000 common shares and $24,000 for the Credit Facility. All shares issued pursuant to the Transaction will be subject to a hold period of four months and one day, according to Canadian securities law.

Marc Lemieux, chairman of the Board of AlliancePharma, commented:

We are very proud to have concluded a transaction which makes AlliancePharma a key player in the health services industry in Quebec. We believe that our development strategy generates value in a market that presents an attractive business potential in the short term.

Click here to read the full AlliancePharma Inc. (TSXV:APA) press release.

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