Myconic Capital Enters Into Letter Of Intent To Acquire Interest In Miami-Based Tristar Wellness And Develop Satellite Ketamine Micro-Clinics

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Myconic Capital Corp. (formerly, Auralite Investments Inc.) has entered into a letter of intent with Tristar Wellness LLC, operator of a wellness clinic in the Miami Beach area.

Pursuant to the terms of the letter of intent, it is contemplated that the company would acquire 49% of all issued and outstanding shares of Tristar. Tristar is an established clinic offering a broad scope of wellness-related treatments, including: primary care; pain management; addiction medicine; and various intravenous (IV) therapies (e.g., immune system and energy boosts).

Tristar introduced ketamine infusions to its offerings in response to increasing popularity of this approach to treating conditions such as depression, general anxiety disorder, and post-traumatic stress disorder. This planned acquisition adds a new geographic focus and complements other strategic acquisitions of clinic operators presently being pursued by Myconic, including Mindscape Ketamine & Infusions Therapy, PLLC of Houston, Texas (as announced in a March 10, 2021 press release); and NY Ketamine Medical Practice, PLLC of New York City (as announced in an April 5, 2021 press release).

In addition to the proposed acquisition of 49% of Tristar and its existing wellness clinic in Miami Beach, Florida, Myconic has agreed to finance the development of a portfolio of satellite ketamine micro-clinics in South Florida by advancing 100% of all construction and early-stage operation costs in exchange for a 50% interest in each micro-clinic. The development of the micro-clinics is subject to the formation of a joint venture entity and pending all required state, municipal and regulatory approvals.

Transaction Highlights

• The transaction leverages Myconic’s growing investment presence in ketamine infusion therapies in the United States, alongside current transactions of other micro-clinics offering these services in Texas and New York.

• Reliable source of recurring cash with Tristar’s Miami Beach clinic generating more than US$800,000 in revenue in 2020.

• Intrinsic scalability of service offering and micro-clinic portfolio in the state of Florida.

Pursuant to the LOI, Myconic would acquire 49% of the issued and outstanding shares of Tristar for a net purchase price of USD $818,300, comprised of: (i) US$523,300 equivalent value in common shares in the capital of Myconic, (ii) US$245,000 in cash to reduce existing debt obligations, and (iii) US$50,000 working capital to be applied to search engine optimization and marketing purposes.

The payment shares will be subject to a lockup period of 24 months on issuance, with 15% of the payment shares released 4 months and 1 day following closing, 40% of the payment shares released 12 months following closing and 45% of the payment shares released 24 months following the closing of the acquisition as contemplated in the LOI.

Robert Meister, CEO noted, “Purchasing an equity stake in Tristar is an exciting opportunity for us to strengthen our initiatives to become a key player amongst the leaders in the ketamine infusion space. Miami Beach is an important US market for wellness and innovative healthcare, both for area residents and as a destination for medical tourism. This transaction allows us to enter a key market, with the opportunity to grow in Florida with future facilities. We look forward to working with Tristar’s team to create value together in the operation of their existing clinics, and work towards scaling Tristar’s total reach through the planning and developing of new micro-clinic facilities.”

The completion of the acquisition is subject to a number of conditions which include but are not limited to the execution of a definitive agreement, completion of satisfactory due diligence of Tristar, and the approval of the transaction by the boards of directors of each of Myconic and Tristar.

About Tristar

More information about Tristar can be found on its website: https://www.tristarwell.com/

About Myconic

Myconic Capital Corp is an investment issuer with a diversified portfolio that is focused on emerging companies active in the high-tech, real estate, cannabis, mining and health & wellness sectors.

 

Source: StreetInsider

Tennessee-Based American Health Partners Bought By Michigan-Based Investment Firm

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Franklin-based American Health Partners has been purchased by the Mitchell Family Office, an investment firm with a focus in health care, according to a news release. Terms of the deal were not disclosed.

AHP provides health care services to adults and seniors, including home health and hospice, short-term care aimed at recovery and rehabilitation and daily living care. The company operates 29 senior living and skilled nursing centers, five psychiatric hospitals and home health offices, with seven divisions across nine states, in total. The company has 140 employees, according to its LinkedIn page. AHP’s executive team will remain in place.

“This is an important step forward in the evolution of our company,” Michael Bailey, CEO of AHP said in the release. “The past year has been challenging for everyone providing long term care and other health care services to seniors, though we’ve fared better than most. This ownership agreement presents an exciting opportunity for American Health Partners. MFO has the expertise and financial resources to build on our strong foundation, fund our strategic plan and enhance our ability to seize new growth opportunities.”

Birmingham, Michigan-based Mitchell Family focuses on “building and growing successful health care companies,” according to the release, something founder Mark Mitchell said the firm thinks it can do with AHP.

“We are very selective on where we choose to invest. With its full continuum of health care services, a strong management team and a growing Medicare Advantage business, we view American Health Partners as a company with tremendous growth opportunities,” Mitchell said in the release. “We see ourselves as the bridge that helps high-potential companies go to the next level.”

 

Kayne Anderson Reportedly Set To Close $2.5B Fund With Eye Toward Medical Office Buildings

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In a move underscoring growing demand for medical office, Kayne Anderson Real Estate is set to close a $2.5 billion fund expected to spend approximately half of its money on the asset class, the Wall Street Journal reported this week, citing sources familiar with the fund.

While medical office buildings sales volume slowed in 2020, they performed better than most asset classes during the pandemic. A report from Colliers earlier this spring noted that MOB investment decreased 12.2% year-over-year in 2020 to hit $11.1 billion, while cap rates fell 20 basis points to 6.5%. But when compared to overall CRE, which posted a 32% decline in sales volume overall, those numbers look good.

“Cap rate stability reflects the continued desirability of healthcare as it became one of the most essential sectors in 2020,” Colliers said in the report, noting that investors view MOB as safe and durable even in the face of economic shockwaves.

The sector also saw an increase in activity in Q4, with sales volume rising to $3.6 billion from $2.1 billion in Q3.  Private equity investment led acquisition activity last year, accounting for 67% of total volume.

Investors may find, however, that supply will be an issue for the sector this year: aside from new construction, the market has a somewhat limited supply of investable inventory, according to Colliers, with healthcare systems holding nearly two-thirds of all healthcare real estate. The firm notes that with 30 million new square feet of new space expected this year, demand is still expected to outpace supply.

Experts also note that investors looking to repurpose office assets for medical uses should know that “it’s really not that easy,” according to Pete Bulgarelli, president and CEO of Lillibridge Healthcare Services and executive vice president, office, Ventas, who made the comments on CBRE’s ‘The Weekly Take’ podcast. The issue boils mostly down to the way in which physicians deliver care and utilize their space.

There are some headwinds that could slow the asset class’ performance. Medical office REITs could face some disruption as changes like telemedicine continue to change the way care is provided. While the overall impact of telehealth is still TBD, a recent BTIG notes that some features are already becoming clear.

“This trend is partially reorganizing the system by bringing care to the patient rather than the patient to the healthcare while treating them as a consumer,” BTIG analysts wrote. “Recent years have seen a continued push to move care to the lowest acuity setting, and with advancing technology that setting might increasingly be the patient’s home.”

 

Source: GlobeSt.