Canadian social-impact investment company QuestCap, Inc. CSE:QSC; FRA:34C1 has announced that it has entered into an agreement with Latin-Canada Pharma Inc. to acquire a 28% indirect equity interest in Sanaty IPS S.A.S., a full-service medical clinic in Cúcuta, Colombia.
Sanaty is an “Institucion Prestadors de Servicios de Salud” (IPS) (a health providing institution) as designated by the Colombian Ministry of Health which allows Sanaty to provide medical consultation and diagnostic services in Colombia. Sanaty’s medical team is comprised of physicians, surgeons, psychologists, nurses and medical technicians. The primaryclinic and headquarters are in Cucuta, Santander, Colombia, Colombia’s largest border city with Venezuela.
Sanaty is authorized by the Colombian Ministry of Health to provide its services via telemedicine, allowing for long-distance patient and clinician contact, care, advice, reminders, education, intervention, monitoring and remote admissions. During the COVID-19 pandemic and due to the strict Colombian quarantine, Sanaty has been seeing patients virtually and prescribing both real-time reverse transcription polymerase chain reaction (rRT-PCR) and antibody tests for COVID-19.
Sanaty’s telemedicine business is growing quickly as the only entities authorized in Colombia to prescribe and administer diagnostic tests for COVID-19 are clinical laboratories and IPS (hospitals and clinics) and people are avoiding visiting hospitals and clinics and are using telemedicine more every day. Further, the economic impacts of COVID-19 have caused many Colombians to reallocate their healthcare expenditures from private insurance/hospitals to private medical clinics like Sanaty, that provide personalized, prompt care.
Sanaty is creating a COVID-19 program that would be the only voluntary and prepaid annual diagnostic program in Colombia, that includes taking one antibody test and 24 viral tests every 15 days, for one year. According to QuestCap, no private prepaid health plan in Colombia currently offers anything similar. Sanaty also plans to expand to other major cities in Colombia, including opening up four additional clinics in the next 12 months to reach additional patients.
QuestCap will acquire the indirect equity interest in Sanaty through the purchase of a 40% interest in Latin-Canada Pharma Inc. (Barbados) (“LCP Barbados”), Sanaty’s 70% shareholder, from Latin-Canada Pharma Inc. (Canada). For the acquisition of the 40% equity interest in LCP Barbados, QuestCap will issue to the shareholders of Latin-Canada Pharma Inc. (Canada) an aggregate of 12 million QuestCap common shares with an ascribed value of C$0.175 per common share. In addition, QuestCap will issue two million additional QuestCap common shares to the shareholders of Latin-Canada Pharma Inc. if Sanaty’s EBITDA is greater than US$9 million for the 2021 year-end as evidenced by financial statements audited under IFRS standards; and an additional two million QuestCap common shares to the shareholders of Latin-Canada Pharma if Sanaty’s EBITDA is greater than US$18 million for the 2022 year-end as evidenced by financial statements audited under IFRS standards.
The company will also have an option to acquire an additional 10% equity interest in LCP Barbados from Latin-Canada Pharma within 60 days following the closing of the transaction by paying USD$600,000 to the shareholders of Latin-Canada Pharma Inc. No finder fees are payable pursuant to the equity acquisition.