NewLeaf Brands has signed a non-binding letter of intent to acquire Mindleap Health for around CAD 3.50 million (USD 251.16 million).
The target is an advanced digital health platform that helps people connect with mental health specialists.
Under the terms of the deal, NewLeaf is offering common shares as consideration for Mindleap, at a deemed price of CAD 0.55 apiece.
In addition, the acquiror may advance CAD 500,000 in direct investment into the company upon closing of the transaction and CAD 500,000 before, or on, 1st September 2020.
NewLeaf will pay a finder’s fee for the deal, which is expected to complete after due diligence investigations and subject to definitive documentation and applicable regulatory approvals.
Mindleap’s software has been designed by psychologists and neuroscientists to improve on current telemedicine solutions and is set to launch in the third quarter of 2020.
Its development team has a proven track record in delivering platforms on budget and on time.
According to the press release, there are more than 300.00 million people suffering from depression around the world, with around 100.00 million not responding to available treatments.
The Global Telemedicine Market Size was valued at USD 31.46 billion in 2018 and is expected to grow at a compound annual growth rate of 19.3 per cent until 2025.
Following the global coronavirus pandemic, the need for virtual therapy services has increased and there will be over 1.00 billion telemedicine sessions available by the end of 2020.
Mindleap founder and chief executive, Nikolai Vassey, said: “We have always believed in building strong alliances and are extremely pleased to begin working with the talented team at New Leaf.
“Their investment in Mindleap will allow us to speed up our time to market, add more advanced capabilities but most importantly will get us closer to our goal of improving access to mental health services for those that need them most.”
© Zephus Ltd