Paragon Pharmacies Limited

Paragon Pharmacies Limited

December 07, 2007 16:33 ET

Paragon Announces Agreement to Purchase Assets of Westcoast Central Fill Ltd.

KELOWNA, BRITISH COLUMBIA--(Marketwire - Dec. 7, 2007) - Paragon Pharmacies Limited ("Paragon") (TSX VENTURE:PGN) is pleased to announce that it has entered into a purchase and sale agreement (the "Agreement") to acquire all of the assets of Westcoast Central Fill Ltd. ("Westcoast") from Westcoast and its parent, Catalyst Healthcare Ltd. ("Catalyst"). Westcoast is located in Kelowna, British Columbia and carries on the business of providing pharmacy services to assisted living and long-term care residents in Kelowna and Richmond, British Columbia. Westcoast operates under the trading names Okanagan Central Fill, West Coast Central Fill and Westcoast Central Fill.

The assets pursuant to the Agreement consist of the equipment, inventory, material contracts and goodwill required to carry on the current business of Westcoast. The total purchase price for the Westcoast assets is $5,750,000, subject to adjustments.

Paragon currently owns 2,800,000 shares (26.4%) of Catalyst. Pursuant to the Agreement, payment of the purchase price will consist of $2,950,000 in cash and the cancellation of the 2,800,000 shares that Paragon holds in the capital of Catalyst at a price of $1.00 per share. Closing of this transaction is subject to receipt of all necessary third party consents and regulatory approvals.
"Paragon is pleased to announce this acquisition demonstrating our commitment to an accretive growth strategy and continued fulfillment of our business objectives." said Craig Cameron, President & CEO of Paragon.

Paragon will pay an advisory fee in the amount of $100,000 to an arm's length third party in connection with this transaction.

Paragon is headquartered in Kelowna, British Columbia and currently employs over 400 full and part time staff in its stores and offices. The Corporation owns and operates 18.5 retail pharmacies and 2 home healthcare stores in British Columbia, Alberta and Manitoba.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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