Startup online health care provider Peter/PetraMD plans to acquire Ketamine Wellness Centers (KWC), one of the largest ketamine infusion therapy providers in the U.S., for $1.15 million in tranches over 12 months.
If successful, the acquisition would give Peter/PetraMD an entry into the ketamine therapy space.
Cutter Streeby, chief growth officer at Peter/PetraMD, said in a statement that KWC’s infrastructure would help the company reach its goal of offering low-cost and easy-to-use health care through online services. The company plans to keep treating current ketamine patients and grow the business using its expertise.
“We understand telemedicine, and we understand what it is our patients want – they want to feel better, they want to get better, and they want to live better lives. This acquisition would definitely further our mission to provide affordable and equitable access to health care across the nation,” Streeby said.
The deal depends on successful negotiations and a nonrefundable payment of $100,000, plus assumption of the company’s existing debt.
Bryan Henry, the founder of Peter/Petra MD and a former soldier who has benefited from ketamine therapy, added that the deal could give more veterans access to the care they urgently need.
“I saw an incredible opportunity for Peter/PetraMD to truly expand the footprint and the success of ketamine treatment not only in our veteran population, but also at the national level,” Henry said.
The deal comes as a lifeline for KWC, which recently faced collapse under the leadership of Delic Holdings Corp. (CSE: DELC) (OTCQB: DELCF), a Canadian psychedelic wellness platform started by former executives at High Times magazine, including Matt Stang.
Psychedelic clinics have grown significantly in the U.S. and Canada, providing psychedelic-assisted therapies to patients suffering from mental health conditions such as depression, anxiety, and PTSD.
The aftermath of KWC and other psychedelic treatment centers’ closures have raised questions about the scalability and sustainability of the psychedelic clinic model. One of the main challenges is the reliance on external funding and the pressure to expand quickly, which can put a strain on the clinical model.
For example, KWC had impressive growth, with treatments rising tenfold in four years, eclipsing 12,000 infusions in 2022, according to company filings. However, the acquisition by Delic and the anticipation of the legalization of other psychedelic treatments, such as MDMA and psilocybin, may have created unrealistic expectations and stretched the resources of the company.
By the time the dominoes began falling, KWC’s CEO issued a company-wide email to explain the implosion, citing lower patient counts in new clinics and swelling overhead costs that forced him and his wife to pay employee salaries with their own money since November 2022.