Press Releases

Crescita Acquires Minority Interest in The Best You®

09/07/2021

Enables Crescita to Participate in the Growing Medical Aesthetics Market

Provides Commercial Platform for Crescita’s Medical and Aesthetic Brands

Provides Insights into Consumer Preferences

Crescita Therapeutics Inc. (TSX: CTX) (OTC US: CRRTF) (“Crescita” or the “Company”), a growth-oriented, innovation-driven Canadian commercial dermatology company, today announced that it has completed the acquisition of a minority interest in Akyucorp Ltd. d/b/a The Best You®, a privately-held network of six medical aesthetic clinics in the province of Ontario (“The Best You”). In consideration for the minority interest investment, Crescita will issue 470,128, or 2.2% of its common shares (the “Common Shares”), at a price of $0.70 per Common Share. In addition, the Company will support the Best You’s growth strategy by way of a secured convertible promissory note (the “Convertible Note”) with an initial principal amount of C$0.5M, that could reach up to C$1.25M, contingent on certain events and conditions being met. The Convertible Note will bear interest at variable rates based on the annual volume of purchases of Crescita products and is convertible at Crescita’s option into an additional equity interest in The Best You.

The alliance with The Best You provides numerous advantages for Crescita:

  • commercial platform to increase sales of its medical and aesthetic brands: Pliaglis®, Laboratoire Dr Renaud® and Pro-Derm®;
  • additional opportunities for Crescita’s in-licensed medical products: NCTF® and ART-FILLER®;
  • participation in the booming medical aesthetics market through The Best You’s consolidation strategy;
  • insights into end consumer preferences to fuel product portfolio evolution.

The Best You clinics, together with their affiliated physicians and specialists, provide private pay cosmetic procedures such as neurotoxin injections, dermal fillers, Limitless Hair Removal™, and platelet-rich plasma (“PRP”) procedures. The Best You clinics carry a full range of skincare and dermatology products and offer popular cosmetic surgery procedures, including liposuction, breast augmentations, face lifts and blepharoplasty. In addition to aesthetic services, The Best You clinics also provide skin cancer screening and surgical treatments covered by the Ontario Health Insurance Plan (“OHIP”) via its SkinCancerCare.ca network.

Serge Verreault, President and Chief Executive Officer of Crescita, commented, “This investment is well aligned with our growth strategy to scale up in the medical aesthetics space. Our alliance with The Best You provides an excellent commercial platform for some of our gold-standard medical brands such as Pro-Derm, NCTF and ART-FILLER, a range of Hyaluronic Acid-based injectables expected to launch in early 2022. We also expect to get closer to our end consumers and gain valuable insight into their preferences and expectations with regards to medical aesthetic procedures. This, in turn, will allow us to develop more tailored skincare solutions for consumers.”

Dr. Deniz Akyurekli, MD, Founder and Chief Medical Officer of The Best You, said,At the Best You, we help customers look and feel their best to enhance their overall well-being and quality of life. We do this through personalized plans that are conservative, yet innovative, to create the greatest positive change while minimizing risk. We are excited to work with Crescita, and we anticipate collaborating closely on the development of new product formulations that will help us to provide a larger complement of products and services and continue to deliver the highest quality care for our customers.”

Sebastien Charles, President and Chief Operating Officer of The Best You, added, “Crescita brings industry knowledge and capital, which are both key elements in accelerating the execution of our growth plans. We operate in an attractive, high growth, but fragmented market and continue to see a steady increase in medical aesthetic procedures. We believe that we will now be able to participate in the consolidation of aesthetic practices from a position of strength. This alliance also provides access to Crescita’s R&D expertise and manufacturing platform. With Crescita behind us, we will be able to take advantage of exciting opportunities and continue to be a leader in our field.”

About Crescita Therapeutics Inc.

Crescita (TSX: CTX and OTC US: CRRTF) is a growth-oriented, innovation-driven Canadian commercial dermatology company with in-house R&D and manufacturing capabilities. Crescita offers a portfolio of high-quality, science-based non-prescription skincare products and early to commercial stage prescription products. In addition, Crescita owns multiple proprietary transdermal delivery platforms that support the development of patented formulations that facilitate the delivery of active ingredients into or through the skin.

About The Best You

The Best You is a network of six privately held medical aesthetic clinics in the province of Ontario. Since 2002, The Best You has been a leading provider of safe and effective cosmetic medical, laser and surgical procedures and skin cancer management. For an extensive list of our product and services visit www.thebestyou.com and www.skincancercare.ca.

Forward-looking Statements

This press release contains “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”). Forward-looking statements can be identified by words such as: “anticipate”, “intend”, “plan”, “goal”, “seek”, “believe”, “project”, “estimate”, “expect”, “strategy”, “future”, “likely”, “may”, “should”, “will” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the Company’s objectives, plans, goals, strategies, growth, performance, operating results, strategy for customer retention, product development, market position, business prospects, opportunities and industry trends and similar statements concerning anticipated future events, results, circumstances, performance or expectations. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. Crescita’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not unduly rely on any of these forward-looking statements. Important factors that could cause Crescita’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others: economic and market conditions, the impact of the COVID-19 pandemic and the response thereto of governments and consumers, the Company’s ability to execute its growth strategies, reliance on third parties for clinical trials, marketing, distribution and commercialization, the impact of changing conditions in the regulatory environment and product development processes, manufacturing and supply risks, increasing competition in the industries in which the Company operates, the Company’s ability to meet its debt commitments, the impact of unexpected product liability matters, the impact of litigation involving the Company and/or its products, the impact of changes in relationships with customers and suppliers, the degree of intellectual property protection of the Company’s products, the degree of market acceptance of the Company’s products, developments and changes in applicable laws and regulations, as well as other risk factors discussed in the “Risk Factors” sections of the Company’s most recent annual MD&A for the year ended December 31, 2020 and the Company’s AIF dated March 24, 2021. Any forward-looking statement made in this press release is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable securities laws, Crescita undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Crescita Therapeutics
Investor Relations
Linda Kisa, CPA, CA
Email:lkisa@crescitatx.com

Source: Crescita Therapeutics Inc.

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