CHR Medical Corporation [NYSE: CHRM] revealed that the company entered into a contract with Well Health Technologies Corp. Under the terms of the contract, Well health will purchase all of the outstanding and declared shares of CHR Medical Corp. at the rate of USD 4.00/share. Well Health will pay the aggregate purchase price of USD 292.7M to CHR for this Purchase.
The purchase represents an estimation of roughly US$369.2 million comprehensive credit facility. The purchase price addresses payment of roughly 83% to the end cost of the Company’s stocks on Feb 5th, 2021 (the last trading day preceding declaration of the Acquisition), and payment of around 80% to the 30-day quantity-weighted average cost of the Company’s stock as of that date
The acquisition will require the approval of votes cast by stockholders of the company and two-thirds of votes cast by the stockholders, owners of stock options, and owners of restricted share units. The transaction is subject to certain customary approvals, regulatory approvals, and clearances.
Tushar Ramani, CEO of CHR ”This acquisition is the sensible and rational move for CRH too as Well health adds CRH Medical Corporation to its portfolio of medical services related business. Since joining the Company, my directive has been to drive the valuation of CRH through organic and acquisitive development, and the aftereffects of those endeavors are reflected in the premium being paid to investors in this exchange.”
If Well Health breaches any warranty, representation, or covenant then under the terms of the agreement the company will have to pay a reverse termination fee of $10million to CHR Medical Corporation.