After experiencing firsthand the life-changing benefits of ketamine therapy for his traumatic brain injury, Bryan Henry knew he wanted to bring this revolutionary treatment to a wider audience. With his company’s acquisition of Ketamine Wellness Centers, the CEO is now one step closer to making that dream a reality.
Henry, a former Marine combat veteran turned endocrinologist, founded Peter MD as an online men’s health care clinic, but he said he is always looking for opportunities to expand its reach and improve patient care.
In an exclusive interview with Green Market Report, Henry, founder of Peter MD, shared his personal journey and the complex story behind the deal.
A Series of Challenges
The acquisition did not come without its challenges. Ketamine Wellness Centers previously was under the ownership of public company Delic Holdings (OTC: DELCF), after Delic purchased it from Kevin and Julie Nicholson. But when business grew too big too fast, money got tight and Delic didn’t have the means to cover the spend.
Then turmoil struck the wider banking system, leaving the infusion centers in financial disarray and thousands of patients without access to critical care.
According to Henry, KWC had a bridge loan ranging from $500,000 to $1 million, which was intended to rescue the clinics. However, when Sillicon Valley Bank collapsed, it frightened the private equity investors, causing them to withdraw their funds.
When the Nicholsons, who had stayed on to oversee operations, received news of the withdrawn money, they closed everything.
“They literally locked the doors, closed down, shut their phones off, shut their emails off, goodbye,” he said.
Henry described the acquisition process as “a nightmare” due to the Nicholsons’ attempts to sabotage the deal. They, along with anesthesiologist Mark Murphy, registered a new LLC and planned to reopen the clinics under a new name, disregarding their noncompete agreement with Delic, according to Henry.
“They ran all operations, and they just weren’t operationally sound,” he said of the previous owners. “You either fail two ways: you grow too quickly and you’re undercapitalized, and that’s what happened with them.”
Delic is now suing the Nicholsons for tortious interference and noncompetes, and the couple also face a range of other legal issues, including class-action lawsuits and investigations by the Drug Enforcement Administration and medical boards.
“We’ve worked directly with Matt (Stang, the executive director of Delic). I mean, I don’t know him personally; we’ve just done Zooms. But Matt’s been helpful,” Henry said. “He’s been as helpful as he can. I mean, he had his hands tied because they didn’t run any operations, so they didn’t really know what was going on.”
Peter MD acquired the assets of Ketamine Wellness Centers for $1.15 million, with an additional $500,000 for shareholders if they can meet certain expectations regarding reopening the clinics. Henry said he’s determined to right the wrongs of the previous owners and provide the much-needed care that thousands of patients, many of them veterans, have relied on.
In addition to the acquisition of the wellness centers, Peter MD recently acquired a Beverly Hills gynecology practice and is in the midst of a Series A fundraising round.
“We acquired Dr. Uzzi Reiss MD, who’s a big celebrity doctor,” he said, before naming several A-list celebrities that have visited Reiss.
With a new valuation over $300 million, the company continues to forge ahead in its mission to provide comprehensive care for its patients.
As for Henry, his commitment to helping others remains unwavering. He expects to get the clinics back online “probably starting in the next 10 days.”
New prospects can reach out on the Peter MD website, and previous patients can expect a “significant discount” for the trouble.
“I almost had to retire back in 2019. I couldn’t even get out of bed, my TBI (traumatic brain injury) was so bad,” Henry recalled. “Ketamine literally saved my life. I’m still on ketamine. I’ve been a successful patient for about a year and a half.”