Healthscreen to merge with AIM Health
CATHARINES, Ont. – Healthscreen Solutions Inc., a supplier of Electronic
Health Records (EHR), has announced plans to merge with AIM Health
Group, a private national healthcare services company.
The transaction is subject to
regulatory approval and the completion of a financing of at least Cdn$4
million. For its part, AIM Health Group provides healthcare services to corporations, insurance
companies, government agencies and direct to individuals across Canada.
AIM’s divisions include family practice and walk-in clinics,
multidisciplinary treatment and rehabilitation, occupational health and
a pharmaceutical research division.
AIM has grown each year since its inception in 1990, and recorded net
annual revenues of approximately $26 million.
For its part, Healthscreen’s revenues are approximately $4 million
annually, with more than 4,000 physicians using the Company’s electronic
health records software across Canada. AIM is controlled by Lu Barbuto
of Aurora, Ont.
The newly formed entity, soon to be renamed, will combine the strengths
of both businesses. Healthscreen will become the technology, e-Health,
research, and patient/data management integration link for AIM. It will
assist in creating access to physicians’ patients through direct
Patient-Consumer e-Health, utilizing the family physician as the MD
In addition, Healthscreen’s proprietary EHR software will be used by
AIM’s various divisions. According to the companies, Healthscreen is
well positioned to support and grow several of the AIM divisions because
of Healthscreen’s large physician client base, operational clinic
experience and leading EMR solutions software.
AIM is in the process of combining many of its medical clinics and
rehabilitation clinics into health and wellness centres which are
larger, integrated clinics offering a broad range of services to the
patient. Services that are provided in these centres include walk-in and
family practice medical services, rehabilitation services, pharamacy
infusion services and various wellness programs. Specialty services
relating to cardiac and cancer prevention and rehabilitation can be
delivered in the health and wellness centres.
Healthscreen and AIM believe that changes in the Canadian healthcare
marketplace and in the Canadian illness profile present many
opportunities for the new company to expand into preventative health and
the development of health services offered directly to the consumer.
Management believes that the time is now to rapidly expand
infrastructure and healthcare services, especially in disease prevention
and illness management such as cardiac services, cancer prevention and
wellness related services.
The immediate strategic priorities in the combined operations of the two
organizations are to:
• Continue to develop Health and Wellness Centres across Ontario, and
then across Canada.
• Healthscreen will become the technology, e-Health, research, and
patient/data management integration link for AIM. It will assist in
creating access to physicians’ patients through direct Patient-Consumer
e-Health, utilizing the family physician as the MD Health Coach.
• Expand pharmaceutical drug trial research through the continued
recruitment of general practitioners.
• Continue to expand occupational health and wellness services for
The terms of the transaction are that Healthscreen will issue
120,000,000 common shares to the existing shareholders of the AIM Health
Group. During negotiations, Healthscreen Solutions and AIM Health Group
fixed the exchange ratio whereby the existing shareholders of
Healthscreen will retain approximately 17% of the number of shares of
the new company to be held by the existing shareholders of AIM.
This ratio will be preserved during the financing. A third party
business valuation of the two companies was conducted concluding that
the exchange ratio was fair. The actual number of shares to be issued on
the closing of the transaction will be adjusted to reflect the amount of
the financing raised.
The proceeds of the financing will be used to fund the development of
the e-health business, the build out of more health and wellness centres
and for general corporate purposes.
The new board will consist of Lu Barbuto, President and CEO of AIM, and
Greg Van Staveren, CFO of AIM, Dr. Bruce Rosenberg
(pictured above)of Healthscreen Solutions, and four other new
independent members who have not yet been nominated. Shareholder consent
will be required for these appointments once the transaction has been
Healthscreen intends to make application to the TSX Venture Exchange to
exempt Healthscreen from the requirements to obtain a sponsor in
connection with the transaction.
Completion of the transaction is subject to a number of conditions,
including but not limited to, Exchange acceptance and disinterested
Shareholder approval. The transactions cannot close until required
Shareholder approval is obtained. There can be no assurance that the
transactions will be completed as proposed or at all.
About Healthscreen Solutions Inc.
Healthscreen Solutions (www.healthscreen.com)
was among the first Electronic Health Records (EHR) providers to create
leading edge software that support digitalization and network
connectivity solutions for a growing list of research groups and
community physicians. The company serves thousands of physicians and
handles more than $1.5 billion in healthcare transactions a year.
Healthscreen also operates five full service medical clinics that act as
turn-key operations maximizing returns for physicians while enhancing
About AIM Health Group
AIM Health Group (www.aimhealthgroup.com)
is a fully integrated, Canadian healthcare company that offers
comprehensive services to individuals that are ill, injured, or
disabled, and to individuals requiring life style interventions to
improve their quality of life (wellness). AIM Health Group’s five health
delivery divisions integrate all aspects of healthcare from clinical
research, medical assessments, occupational health, multi-disciplinary
rehabilitation, medical acute care, family practice and specialty
clinics. AIM provides comprehensive health services through dedicated
professionals who are all part of a successful and growing organization
that fosters excellence in managing the individuals health through
clinical consensus contribution.