Connect with us


US private equity firms make $300 million CAD strategic investment in Fullscript – BetaKit



A pair of American private equity firms have agreed to invest $300 million CAD ($240 million USD) in Ottawa-based healthtech startup Fullscript.

HGGC and Snapdragon Capital Partners have signed a definitive agreement to make a strategic growth investment in the Canadian firm, which offers a marketplace designed to power the supplements businesses of alternative health practitioners.

Fullscript offers a marketplace designed to power the supplements businesses of alternative health practitioners.

Fullscript said the HGGC and Snapdragon investment is designed to help it expand its platform “across the patient treatment lifecycle.” With the new financing, Fullscript co-founder and CEO Kyle Braatz said the company plans to make “significant investments in people, technology, partnerships and acquisitions” to accelerate its growth strategy, as it looks to become the go-to platform for integrative medicine.

Founded in 2011, Fullscript provides supplement delivery and virtual care tools for integrative medicine practitioners and their patients. Integrative medicine refers to the integration of conventional medical care with complementary and alternative therapies like nutritional supplements.

Fullscript’s software allows integrated medicine practitioners to write virtual treatment plans, dispense supplements and provide adherence tools and evidence-based resources to their patients. The company’s platform offers over 20,000 products from over 300 brands.

According to Ottawa Business Journal, the investment comes amid a period of growth for Fullscript, which has more than 500 employees and seen revenues increase from $40 million three years ago to a projected $300 million in fiscal 2021.

The $300 million deal has yet to close. A spokesperson for HGGC told BetaKit that these types of transactions typically close in 30 to 45 days, but said there is no official timeline for this deal. In response to questions about whether HGGC and Snapdragon are set to acquire a minority or a majority stake in Fullscript as part of this deal, and what the breakdown of this investment is in terms of debt to equity, they said the companies are not disclosing any further details.

HGGC is a Palo Alto, California-based middle-market private equity firm with an investment approach that involves acquiring scalable business through partnerships with management teams, founders, and sponsors. Connecticut’s Snapdragon is a growth equity and buyout investment firm focused on growth consumer categories and digital enablement, with a particular eye towards health and wellness companies.

RELATED: Private equity firm Novacap raises largest ever fund at $1.865 billion USD

In 2018, Fullscript and Scottsdale, Arizona-based Natural Partners merged, becoming Natural Partners Fullscript, bringing together Natural Partners’ nutritional supplement wholesale and fulfillment network together with Fullscript’s dispensing platform. Earlier this year, the company rebranded to just Fullscript.

Fullscript previously secured $25 million in Series B financing in 2019 led by Kayne Partners, the growth equity group of Los Angeles-based Kayne Anderson Capital Advisors, which focuses on enterprise software and tech-enabled business services companies. According to TechCrunch, Fullscript was bootstrapped prior to that round.

Over the past year, Fullscript has made a number of significant leadership changes. Jeff MacDonald, former vice president of product management at Mindbridge AI, joined the firm in July as chief product officer. His hire followed a series of executive moves the company made earlier this year, as Braatz shifted from president and chief revenue officer to CEO in January, replacing Fran Towey, who transitioned to chair of Fullscript’s board.

Towey served as CEO of Natural Partners since 2014, and of Natural Partners Fullscript for two years following the merger. In addition to this CEO shuffle, Fullscript promoted Christy White to chief of staff, hired Elizabeth Halkos as chief commercial officer, and named Ken Taylor as its new chief financial officer.

Feature image by Mika Baumeister via Unsplash

Adblock test (Why?)

Source link

Continue Reading


Oil rises as investors focus on OPEC+ decision amid growing Omicron fears



Oil prices rose on Thursday, recouping the previous day’s losses, as investors adjusted positions ahead of an OPEC+ decision over supply policy, but gains were capped amid fears the Omicron coronavirus variant will hurt fuel demand.

Brent crude futures rose 85 cents, or 1.2%, to $69.72 by 0402 GMT, having eased 0.5% in the previous session.

U.S. West Texas Intermediate (WTI) crude futures gained 85 cents, or 1.3%, to $66.42 a barrel, after a 0.9% drop on Wednesday.

“Investors unwound their positions ahead of the OPEC+ decision as oil prices have declined so fast and so much over the past week,” said Tsuyoshi Ueno, senior economist at NLI Research Institute.

Global oil prices have lost more than $10 a barrel since last Thursday, when news of Omicron shook investors.

“Market will be watching closely the producer group’s decision as well as comments from some of key members after the meeting to suggest their future policy,” Ueno said.

The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, will likely decide on Thursday whether to release more oil into the market as previously planned or restrain supply.

Since August, the group has been adding an additional 400,000 barrels per day (bpd) of output to global supply each month, as it gradually winds down record cuts agreed in 2020.

The new variant, though, has complicated the decision-making process, with some observers speculating OPEC+ could pause those additions in January in an attempt to slow supply growth.

“Oil prices climbed as some investors anticipate that OPEC+ will decide to maintain the current supply levels in January to cushion any damage on demand from the Omicron spread,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.

Fears over the impact of the Omicron variant of the coronavirus rose after the first case was reported in the United States, and Japan’s central bank has warned of economic pain as countries respond with tighter containment measures.

U.S. Deputy Energy Secretary David Turk said President Joe Biden’s administration could adjust the timing of its planned release of strategic crude oil stockpiles if global energy prices drop substantially.

Gains in oil markets on Thursday were capped as the U.S. weekly inventory data showed U.S. crude stocks fell less than expected last week, while gasoline and distillate inventories rose much more than expected as demand weakened. [EIA/S]

Crude inventories fell by 910,000 barrels in the week to Nov. 26, the Energy Information Administration (EIA) said, compared with analyst expectations in a Reuters poll for a drop of 1.2 million barrels.

(Reporting by Yuka Obayashi; Editing by Tom Hogue)

Continue Reading


Toronto market hits 7-week low on Omicron uncertainty



Canada‘s main stock index fell on Wednesday to its lowest level in over seven weeks as the United States reported its first case of the Omicron variant that investors fear could impede economic recovery, with the index giving back its earlier gains.

The Toronto Stock Exchange’s S&P/TSX composite index ended down 195.39 points, or 0.95%, at 20,464.60, its lowest closing level since Oct. 12.

Wall Street also closed lower as the U.S. Centers for Disease Control and Prevention said the country had detected its first case of the new COVID-19 variant, which is rapidly becoming dominant in South Africa less than four weeks after being detected there and has spread to other countries.

It might take longer than expected for supply chain disruptions to abate, “especially if we have renewed shutdowns in Asia,” said Kevin Headland, senior investment strategist, Manulife Investment Management.

Still, Headland does not expect the new variant to lead to an economic recession or a bear market for stocks in 2022, saying: “Reaction to headline news provides opportunities for those that have a longer-term timeframe to add in the equity markets.”

The TSX will add to its recent record high over the coming year as the domestic economic recovery helps underpin corporate earnings, but gains are expected to slow from 2020’s breakneck pace, a Reuters poll found.

The technology sector fell 2.7%, while energy ended 1.9% lower as oil was unable to sustain an earlier rally. U.S. crude oil futures settled 0.9% lower at $65.57 a barrel

The materials group, which includes precious and base metals miners and fertilizer companies, lost 2.2%.

Financials were a bright spot, advancing 0.4%, helped by gains for Bank of Nova Scotia as some analysts raised their target price on the stock.

Bombardier Inc was among the biggest decliners. Its shares sank 10.4%.


(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Peter Cooney)

Continue Reading


Canada’s TSX to extend record-setting rally; pace of gains to slow: Reuters poll



Canada‘s main stock index will add to its recent record high over the coming year as the domestic economic recovery helps underpin corporate earnings, but gains are expected to slow from 2020’s breakneck pace, a Reuters poll found.

The median prediction of 26 portfolio managers and strategists was for the S&P/TSX Composite index to rise 9.1% to 22,540 by the end of 2022.

That’s a move that would eclipse last month’s record high of 21,796.16 and compares with an August forecast of 22,000. It was then expected to edge up to 23,150 by the middle of 2023.

The index had advanced 18.5% since the start of the year, putting it on track for its second biggest gain since 2009.

“We think the economy and markets will continue to progress further into the mid-cycle phase next year,” said Angelo Kourkafas, investment strategist at Edward Jones. “We are past the strongest point of the cycle, but there is plenty of runway ahead, especially from an economic standpoint.”

Canada‘s economy grew at an annualized rate of 5.4% in the third quarter, beating analyst expectations, and growth most likely accelerated in October on a manufacturing rebound.

“Banks can continue to benefit from an improving economy and reducing loan loss provisions and resource companies can benefit from higher commodity prices,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.

Combined, the financial services and resource sectors account for 55% of the Toronto market’s valuation.

Nearly all participants that answered a separate question on the outlook for corporate earnings expected earnings to improve. But the pace of growth could slow.

“We expect a decelerating pace of (earnings) growth,” said Chhad Aul, chief investment officer & head of multi-asset solutions at SLGI Asset Management Inc. “In particular, we expect the recent strong earnings growth in the energy sector to begin to moderate.”

The price of oil, a key driver of energy sector earnings, has tumbled 24% since October, pressured by rising coronavirus cases in Europe and the detection of the possibly vaccine-resistant Omicron variant.

Another risk to the outlook could be a reduction in policy support, say investors.

With inflation climbing, the Bank of Canada has signaled it could begin hiking interest rates as soon as April and the Federal Reserve is mulling whether to wrap up tapering of bond purchases a few months sooner.

“The key is the pace of both fiscal and monetary policy normalization,” said Ben Jang, a portfolio manager at Nicola Wealth. “This process will likely lead to more volatility in markets, potentially returning to an environment where we will see drawdowns of more than 10%.”

Asked if a correction was likely over the coming six months, nearly all respondents said yes.


(Reporting by Fergal Smith; polling by Mumal Rathore and Milounee Purohit; editing by David Evans)

Continue Reading