March 15, 2017

CRH Medical Corporation Announces Acquisition in Florida and First Monitored Anesthesia Care Development Program in Washington State

VANCOUVER, B.C. – March 15, 2017 – CRH Medical Corporation (TSX: CRH) (NYSE MKT: CRHM) (the “Company”), announces that it has completed an accretive transaction whereby CRH has acquired a 60% interest in a gastroenterology (“GI”) anesthesia practice in Kissimmee Florida (“Kissimmee”).

CRH also announces that it has entered into an exclusive agreement to develop and manage a monitored anesthesia care (“MAC”, or “Deep Sedation”) program with Puget Sound Gastroenterology (“PSG”), located in Washington State. Under the terms of the agreement, CRH has the option to acquire 51% of the newly created MAC business at a future date.

Kissimmee Transaction Highlights:

  • Total annual estimated revenue of US$2.2 million
  • EBITDA and cash flow accretive
  • Services one ambulatory surgical center (“ASC”) and is CRH’s third acquisition in Florida
  • Structured as joint venture with CRH retaining a 60% interest

PSG Transaction Highlights:

  • PSG is a premier group of gastroenterologists with four ASCs in the greater Seattle area
  • CRH to develop and manage an MAC program for PSG
  • CRH retains an option to purchase 51% of the new anesthesia business at a future date, no sooner than 12 months

CRH estimates that approximately half of the endoscopic procedures administered in ASCs are performed without MAC, the standard of care for anesthesia for endoscopic procedures. CRH’s MAC Development Program represents a significant new opportunity to expand the Company’s anesthesia services business by employing its expertise to assist gastroenterology practices to transition to monitored anesthesia for better patient care.

Edward Wright, CEO of CRH, stated, “The Kissimmee transaction with an existing O’Regan customer expands our anesthesia presence to 27 ASCs. More importantly, the MAC program will contribute greatly to CRH’s long-term shareholder value and is a significant new opportunity to engage gastroenterologists currently not utilizing Deep Sedation, which may be as much as 50% of the GI market. Under the MAC program, CRH has the option to purchase 51% of PSG’s anesthesia business after 12 months. Until such time, we will not recognize any material revenue or expense from PSG.”

About CRH Medical Corporation

CRH Medical Corporation is a North American company focused on providing gastroenterologists throughout the United States with innovative services and products for the treatment of gastrointestinal diseases. The CRH O’Regan System is a single-use, disposable, hemorrhoid banding technology that is safe and highly effective in treating all grades of hemorrhoids. CRH distributes the O’Regan System, treatment protocols, operational and marketing expertise as a complete, turnkey package directly to gastroenterology practices, creating meaningful relationships with the gastroenterologists it serves. CRH’s O’Regan System is currently used in all 48 lower US states.

In 2014, CRH acquired Gastroenterology Anesthesia Associates, LLC (“GAA”), a full-service gastroenterology anesthesia company that provides anesthesia services for patients undergoing endoscopic procedures. Since then, CRH has incorporated ten additional acquisitions to its anesthesia business. CRH Anesthesia now services 27 ambulatory surgical centers in seven states and performs approximately 170,000 procedures annually.

Contact Information
Kettina Cordero, Director of Investor Relations
CRH Medical Corporation
800.660.2153 x1030
kcordero@crhmedcorp.com
http://investors.crhsystem.com/

 

Forward-Looking Statements

Information included or incorporated by reference in this document may contain forward-looking statements. This information may involve known and unknown risks, uncertainties, and other factors which may cause our actual results, performance, or achievements to be materially different from the future results, performance, or achievements expressed or implied by any forward-looking statements.  Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “plan,” “intend” or “project” or the negative of these words or other variations on these words or comparable terminology. Certain risks underlying our assumptions are highlighted below; if risks materialize, or if assumptions prove otherwise to be untrue, our results will differ from those suggested by our forward looking statements and our results and operations may be negatively affected. Forward looking statements in this report include statements regarding profitability, additional acquisitions, increasing revenue and Operating EBITDA, continued growth of our business in line with historical growth rates, trends in our industry, financing plans, our anticipated needs for working capital and leveraging our capabilities. Actual events or results may differ materially from those discussed in forward-looking statements. There can be no assurance that the forward-looking statements currently contained in this report will in fact occur. The Company bases its forward-looking statements on information currently available to it. The Company disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.

We're a stable, profitable company respected by both patients and physicians. Learn more »