Toronto, Ontario (March 20, 2020) – Klinik Health Ventures Corp. (TSXV:KHV.P) (“Klinik” or the “Corporation”) is pleased to announce that it has entered into a letter of intent (the “LOI”) with 2576560 Ontario Inc. doing business as NeuPath Health (“NeuPath”), Canada’s largest provider of chronic pain management services. The LOI outlines the principal terms and conditions which will result in a reverse takeover of Klinik by NeuPath (the “Transaction”).
Klinik is a Capital Pool Company and intends for the Transaction to constitute its Qualifying Transaction, as such terms are defined in the policies of the TSX Venture Exchange (the “TSXV”).
In connection with the announcement of the LOI, which is deemed an Agreement in Principle for the Qualifying Transaction, it is anticipated that the trading in the common shares of Klinik (“Klinik Shares”) will be halted pursuant to the policies of the TSXV. Trading will remain halted until, among other things, Klinik completes certain regulatory filings in connection with the Qualifying Transaction with the TSXV and the TSXV has completed certain matters it considers necessary or advisable.About NeuPathNeuPath was incorporated pursuant to the Business Corporations Act (Ontario) on May 10, 2017.NeuPath is Canada’s largest service provider in the highly fragmented chronic pain management market and operates 12 chronic pain management clinics across Ontario under two leading brands: (i) CPM – Centres for Pain Management and (ii) InMedic Creative Medicine.Chronic pain affects approximately one (1) in five (5) Canadians and is a complex, multidimensional condition impacted by biological, behavioural, and social factors. As a result, NeuPath’s 100+ healthcare providers consider each of these factors when assessing and treating each patient. Traditional medical treatments are supplemented with access to medicinal cannabis, NeuPath’s Chronic Pain Self Management Program, and mindfulness meditation. This multimodal approach goes beyond treating the pain sensation and targets some of the underlying and contributing behavioral and social factors. In addition, the multimodal approach provides patients with the education and tools needed to help self-manage their chronic condition.Studies have shown that chronic pain is more costly than cancer, HIV, and heart disease combined. This cost is mainly driven by lost productivity due to job loss and sick days. In an effort to help employees return to work and reduce productivity losses, NeuPath also provides workplace health services and independent medical assessments to disability insurers and employers.
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