YFMC Healthcare to combine with Med-Emerg
YFMC Healthcare Inc YFM
Shares issued 10,265,500 Aug 17 close $0.32
Wed 18 Aug 99 News Release
Mr. Marc Smith reports
Under a previously announced letter of intent, the company has signed an
agreement which will permit YFMC shareholders to exchange their shares in
YFMC for shares in Med-Emerg on a 6.875 to 1 ratio. Under the agreement
signed, Dr. Donald Wilson and Martin Scullion, the principal shareholders
of the company, and who jointly control 63 per cent of YFMC shares, have
agreed to tender their shares to Med-Emerg. Through a takeover bid
circular, which is subject to regulatory approval, Med-Emerg will make an
offer for the remaining YFMC shares in September/October of 1999.
Dr. Wilson, president and founder of YFMC, stated, "Our management team is
excited by the opportunity of working with Med-Emerg in pursuing a national
consolidation strategy in the provision of health care services."
The combined YFMC and Med-Emerg clinic operations will comprise 30 primary
care health facilities, including physiotherapy, psychology, and family
medicine. Currently operating in the provinces of Ontario, Quebec and
Alberta, with combined revenues in excess of $28-million, the merged
companies plan to expand into other provinces. Management believes the
merger will create a larger platform for growth, achieving synergies, cost
savings and generating positive earnings from operations.
Carl Pahapill, president of Med-Emerg, stated: "The growth in the national
network of clinics will allow Med-Emerg to fully leverage its clinic
platform in the development of its integrated health care delivery service
network. Med-Emerg is committed to integrating the combined 30 clinical
facilities with the use of electronic medical records and the World Wide
Web with the view of empowering patients to have timely access to quality
health care information products and services."
The merger of Med-Emerg and YFMC will position the combined entities as one
of the largest pre-eminent, coast to coast clinic management companies in
Canada.
Med-Emerg International is committed to becoming the pre-eminent provider
of an Internet health network that uses enabling technology to link
patients, physicians and service providers. Med-Emerg's medical management
arm specializes in the co-ordination and delivery of emergency and primary
health care related services in Canada. These services include physician
and nurse staffing and recruitment, clinical management services, the
development and management or urgent care centres, and a comprehensive
physician practice management program. |
