Centric Health Corporation (TSX: CHH) is among one of Canada’s premier and widely-recognized independent healthcare company, which focuses on two core businesses: Specialty Pharmacy and Surgical & Medical Centers. Shares of the independent Canadian healthcare provider jumped nearly 48%, during trading on Wednesday, September 5, 2018. Over the past three months, Centric Health Corporation has seen average daily volume of 139,996 shares. However, volume of 7.55 million shares or dollar volume of C$2.64 million, exchanged hands during Wednesday’s trading session.
Shares of Centric Health Corporation climbed on Wednesday, after the company announced that it has entered into a strategic partnership with Canopy Growth Corporation (TSX: WEED) (NYSE: CGC). Specifically, the two companies entered into a multi-year supply and services agreement, in which Canopy Growth will be the “preferred education partner and supplier of choice of medical cannabis…to Centric Health,” according to the press release. This partnership will not only help with supplying quality medical cannabis to Centric Health Corporation’s patients, but it also includes an educational element that helps patients become informed on their medicinal choices. Here is the full press release detailing of the partnership:
Centric Health Corporation Press Release:
TORONTO and SMITHS FALLS, ON, Sept. 5, 2018 /CNW/ – Centric Health Corporation (“Centric Health” or the “Company”) (TSX:CHH) today announced that it has entered into multi-year supply and service agreements with Canopy Growth Corporation (“Canopy Growth”) (TSX: WEED; NYSE: CGC) for the provision of medical cannabis. Under the agreements, Canopy Growth will be the preferred education partner and supplier of choice of medical cannabis primarily through its Spectrum Cannabis brand to Centric Health and the seniors that it serves both in long-term care and retirement residences, as well as seniors living in the community.
Spectrum Cannabis and Centric Health will work collaboratively to educate Centric Health’s clinical pharmacists, as well as other healthcare partners, residents and seniors and their families, on the benefits and potential applications of medical cannabis. Centric Health’s clinical pharmacists are in an ideal position to provide guidance on the safe use of medical cannabis as they are specially trained in geriatric medicine. Many seniors face significant barriers when it comes to access and knowledge around the benefits of medical cannabis but with the support of trained pharmacists and educators, the seniors that Centric Health serves and those living within the community will have the ability to receive assessments and on-going support from a pharmacist to ensure the highest degree of safety and efficacy. Centric Health’s unwavering commitment to quality care and resident outcomes through their existing pharmacy operations and focused strategy of expanding service offerings to seniors in the community makes for an ideal long-term strategic partnership.
“We believe that our partnership with Centric Health will help reduce many of the existing gaps in the continuing care space by having a trusted partner at our side who can provide education, assist in policy development and, most importantly, provide clinical pharmacist oversight of medical cannabis through medication management,” said Mark Zekulin, President & Co-CEO, Canopy Growth. “The continuing care space is comprised of a patient population that can greatly benefit from the therapeutic effects of medical cannabis.”
Canopy Growth and Centric Health have also entered into a separate business development agreement wherein Canopy Growth has advanced funds to Centric Health to help with improved education and assistance programs. As part of the business development agreement, Centric Health issued 850,000 warrants to Canopy Growth at an exercise price of $0.25per common share for a life of 48 months with the vesting date set at September 4, 2020.
“Our strategic relationship with Canopy Growth leverages Centric’s national Specialty Pharmacy footprint and respected clinical pharmacists with their sophisticated educational platform and range of medical cannabis products, including the Spectrum Cannabis line that makes it easy for seniors to understand the strength and dosage of the medical cannabis they are using as part of their treatment program,” said David Murphy, Centric Health’s President and Chief Executive Officer. “The combination of Centric Health and Canopy Growth capabilities will ensure that, where a healthcare practitioner has determined medical cannabis is appropriate, seniors and home operators will have the best possible support and oversight for medical cannabis treatments.”
Here’s to Future Growth (and providing seniors with the best care possible).
About Centric Health
Centric Health’s vision is to be Canada’s most respected and recognized provider in the independent healthcare sectors in which it operates, world renowned for delivering the highest levels of quality care and outcomes, innovative solutions and value to patients, clients and stakeholders. To this end, Centric Health primarily focuses on two core healthcare businesses:
- The Specialty Pharmacy division is a “Seniors First” model composed of a growing national network of fulfilment centres that deliver high-volume solutions for the cost effective supply of chronic medication and other specialty clinical care services, serving more than 28,000 residents in over 475 seniors communities (long-term care facilities, retirement homes and assisted living facilities) nationally. The Specialty Pharmacy division also provides pharmaceutical dispensing services for employees insured by corporate health plans.
- The Surgical & Medical Centres division is Canada’s largest independent surgical provider operating five facilities across four provinces. It serves a diversified customer base with private paid non-insured surgeries and diagnostics, government outsourcing of insured surgeries and diagnostics and other procedures funded by third-party payors (including Workers Compensation) and is the proud owner of Canada’s first Centre of Excellence in Metabolic and Bariatric Surgery.
With national networks of facilities in each of its businesses, deep knowledge and experience of healthcare delivery and extensive, trusted relationships with payers, physicians, and government agencies, the Company is uniquely positioned to address current and future healthcare needs in growing markets as the Canadian healthcare industry goes through a major transformation over the medium to long term. www.centrichealth.ca
About Canopy Growth Corporation
Canopy Growth is a world-leading diversified cannabis company, offering distinct brands and curated cannabis varieties across the globe. Canopy Growth operates over a dozen licensed cannabis production sites globally with over 2.7 million square feet of production capacity, including over 500,000 square feet of GMP certified production space. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time.
With operations spanning 11 countries across five continents, the Company is proudly dedicated to educating healthcare practitioners, advancing the public discourse surrounding cannabis, and conducting robust clinical research in cannabinoid-based animal and human medicines. The Company has also established partnerships with leading sector names including cannabis icon Snoop Dogg, breeding legends DNA Genetics and Green House seeds, and Fortune 500 alcohol leader Constellation Brands, to name but a few.
Built on a proud history of firsts, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth.
About Spectrum Cannabis
Spectrum Cannabis, a wholly-owned subsidiary of Canopy Growth, is dedicated to simplifying medical cannabis for patients and healthcare practitioners. Spectrum Cannabis is an international medical business which interfaces with healthcare professionals and patients around the world. Founded in Canada, Spectrum Cannabis operates in Australia, South America, Africa and across Europe. Spectrum Cannabis products are available in a wide range of potencies and formats designed to simplify the dialogue around strength and dosage by applying a colour-coded Spectrum to categorize medical cannabis according to THC and CBD levels. Its product lineup includes whole flower cannabis, oils and new innovations such as Softgels. Through product simplification, easy dosing formats, in addition to ongoing education of healthcare professionals, Spectrum is committed to improving the lives of medical cannabis patients around the globe.
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, strategies, alternatives, 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 therefrom.