- Investment company, Global Care Capital (CSE:HLTH) has agreed to acquire 70 per cent of High Standard Health Care
- The company signed a non-binding letter of intent to acquire the shares, in exchange for securities in Global Care
- High Standard Health Care’s CEO will receive 1 million stock options in Global Care as part of the agreement
- High Standard Health Care specialises in providing personal protective equipment (PPE), which is in record demand because of COVID-19
- Global Care Capital (HLTH) is up 1.33 per cent and is trading at $0.38 per share
Investment company, Global Care Capital (CSE:HLTH) has agreed to acquire 70 per cent of High Standard Health Care.
High Standard Health Care specialises in sourcing and providing personal protective equipment (PPE). This includes respiratory masks, hand sanitiser, gowns, infrared thermometers, and face shields.
As a result of the ongoing COVID-19 pandemic, demand for such supplies has never been higher. Understandably, High Standard Health Care has never been busier. Since the outbreak, the company has been procuring PPE for hospitals, municipalities, long-term care facilities, fire departments, and police departments.
In late April, HSHC provided two million respiratory masks to a hospital in New York, a COVID-19 hotspot. In the same month, High Standard Health Care received a license, allowing it to import Class 1 PPE into Canada.
From March 1 to April 30, the company generated approximately C$3.3 million in revenue and $1 million in net income. This was purely from the distribution of PPE products, mainly in North America.
Global Care signed a non-binding letter of intent, to acquire the majority of HSHC’s issued and outstanding common shares. The letter of intent will be formalised by a definitive agreement in future.
Upon closing, Global Care will issue HSHC shareholders with an aggregate 27 million in Global Care common shares, at 70.5 cents each.
HSHC shareholders will also receive an aggregate 3 million common share purchase warrants. Each warrant allows the holder to acquire one Global Care common share at the price from the day before the LOI’s announcement.
Warrant holders will be able to purchase their shares within 24 months of the closing date, with no hold period.
Global Care will also pay $5 million, either in cash or in common shares, for every milestone target which HSHC meets. If High Standard Health Care achieves all milestone targets, it will receive up to $100 million from Global Care.
Finally, HSHC’s CEO, Pat Gray, will receive 1 million stock options in Global Care as part of the transaction.
Global Care Capital (HLTH) is up 1.33 per cent and is trading at $0.38 per share at 9:32am EDT.