Kelowna's Paragon Pharmacies Ltd. (TSX-V:PGN) has acquired a Kelowna competitor for $5.7 million.
The deal involves Catalyst Healthcare Ltd.'s Westcoast Central Fill, which provides pharmacy services to assisted living and long-term care residents in Kelowna and in Richmond, B.C.
Paragon will pay Catalyst $2.95 million in cash and cancel 2.8 million Catalyst shares that Paragon owns, representing 26.4% of Catalyst shares worth $1 per share.
The deal is subject to customary closing conditions, third-party consents and regulatory approval.
Paragon employs over 400 full- and part-time staff in more than 18 retail pharmacies and two home health-care stores in B.C., Alberta and Manitoba.
Paragon's share price range during the past week: between $0.45 and $0.50; 52-week high: $1; 52-week low: $0.42.