M Pharma shares soar as it snaps up fellow healthcare group

M Pharmaceutical (CNSX:MQ) is back on the acquisition trail after it inked a letter of intent to buy out a Cincinnati-based healthcare group.

M Pharma will pay C$1.5mln in cash and a further 80mln shares over the next two years to acquire 40J’s LLC and its related companies and technologies, as well as a further 80mln shares.

That puts the total value of the deal – which is still subject to due diligence and other conditions – at around C$6mln or just over.

40J’s has developed numerous patented and patent-pending technologies for a range of medical concerns over the past decade or so, including in the reproductive health, diabetes and weight loss sectors.

The agreement is part of the firm’s plan – which it set out last month – to acquire more innovative technologies to complement its existing treatments, and ties in well with M Pharma’s ToConceive fertility treatment as well as its C-103 weight loss product.

“This acquisition is a very exciting advancement for M Pharma,” said Gary Thompson, chief executive officer of M Pharma.

“The companies’ extensive list of patented and patent-pending technologies not only builds upon M Pharma’s current pipeline of product innovation, but also brings current distribution partners and ongoing business development, harmonizes operations and R&D initiatives, and adds existing inventory and revenue to our bottom line.”

Shares were up by 33% to C$0.06 this morning.

Story by ProactiveInvestors