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TORONTO, July 09, 2020 (GLOBE NEWSWIRE) -- Social-impact investment company QuestCap Inc. (“QuestCap” or the “Company”) (CSE:QSC; FRA:34C1) announced today that it has entered into an arm’s length binding letter agreement (the “Agreement”) with Latin-Canada Pharma Inc. (Canada) to acquire a 28% indirect equity interest in Sanaty IPS S.A.S. (“Sanaty”), a full-service medical clinic in Colombia.
Sanaty IPS S.A.S.
Sanaty has been designated as an “Institucion Prestadors de Servicios de Salud” (IPS) (a health providing institution) by the Colombian Ministry of Health which allows Sanaty to provide medical consultation and diagnostic services in Colombia. Sanaty’s medical team, comprised of physicians, surgeons, psychologists, nurses and medical technicians, can provide a full-service experience to patients. Sanaty’s inaugural clinic and headquarters are in Cucuta, Santander, Colombia.
Sanaty is authorized by the 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, which are very costly, to private medical clinics, like Sanaty’s, 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. Currently, no private prepaid health plan in Colombia offers anything similar. Sanaty is also looking to expand to other major cities in Colombia, including opening up four additional clinics in the next 12 months to reach additional patients.
The Transaction
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). As consideration for the acquisition of the 40% equity interest in LCP Barbados, QuestCap shall 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 (the “Equity Acquisition”). In addition, QuestCap will issue: (i) two (2) million additional QuestCap common shares to the shareholders of Latin-Canada Pharma Inc. (Canada) 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 (ii) an additional two (2) million QuestCap common shares to the shareholders of Latin-Canada Pharma Inc. (Canada) 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 Inc. (Canada) within 60 days following the closing of the transaction by paying USD$600,000 to the shareholders of Latin-Canada Pharma Inc. (Canada). No finder fees are payable pursuant to the Equity Acquisition.
About QuestCap Inc.
QuestCap Inc. (CSE:QSC; FRA:34C1) is a social-impact investment company. Through QuestCap’s three divisions, MedQuest, TechQuest and ClimateQuest, it seeks, secures and funds recognised sciences, technologies, and solutions that impact our global community today.
The QuestCap executive team is complemented by a panel of global advisors that provide expertise across industries and geographies. This panel includes prominent immunologist Dr. Lawrence Steinman and Dr. Glenn Copeland, who has 45 years of experience in orthopaedic treatment, foot and ankle care, and sports medicine.
Recent MedQuest investments include: $1M into Sunnybrook Hospital’s Research Group for Emerging and Respiratory Viruses (such amount payable in equal $250,000 installments), $0.5M into Sinai Health Foundation’s research in COVID-19 diagnostic testing (such amount payable in equal $125,000 installments), and the profit sharing agreement with MTJR for the distribution of COVID-19 antibody testing kits in the Americas.
QuestCap provides financing for a diverse range of entities in exchange for pre-determined royalties or distributions, or acquires all or part of one or more businesses, portfolios or other assets.
For additional information, please contact:
Doug Sommerville, CEO
Doug.Sommerville@questcapinc.com
For Canadian media enquiries please contact:
Evan Veryard
evan.veryard@questcapinc.com
For US media enquiries please contact:
Veronica Welch
veronica@vewprmedia.com
+1-508-643-8000
Cautionary Note Regarding Forward-looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Equity Acquisition; the business prospects and opportunities of Sanaty in Colombia; the pursuit by QuestCap of investment opportunities; and the merits or potential returns of any such investments. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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