Custom Health Up 8.3% On Signing Binding LOI to Buy Evergreen Pharmacy for $3.5 Million
Custom Health Holdings (CHLT.TO) shares rose 8.3% on Wednesday after it entered into a binding letter of intent (LOI) to buy Wisconsin limited liability company, Evergreen Pharmacy LLC, for $3.5 million.The total purchase price includes not less than $1 million of prescription drug inventory and $450,000 of net working capital. On closing of the deal, the purchase price is payable in cash, subject to a $175,000 indemnity holdback for the six-month period following closing.The company said Evergreen is licensed to provide pharmacy services in Wisconsin, Illinois, and Michigan. Evergreen also has the ability to expand its service offering into Minnesota, it added.Custom Health also issued 99,646 of its common shares in full and final satisfaction of C$578,954.84 owed to certain arm's-length creditors under two promissory notes.Shares of the company were last seen up C$0.50 at C$6.50 on the Toronto Stock Exchange.Price: $6.50, Change: $+0.50, Percent Change: +8.33%
