PharmaCorp Rx (PCRX) Planet MicroCap Showcase: Toronto 2026 summary

Acquisition strategy and pipeline

• PharmaChoice alliance provides exclusive ROFRs on 1,150 stores; McKesson collaboration adds opportunities across IDA, Guardian and Remedy'sRx when McKesson does not pursue a store.

• Management cited access to 3,000+ stores across the networks, with 30-50 PharmaChoice and 50-80 McKesson locations changing hands annually; banner-agnostic deal selection.

• 17 locations in the portfolio; an eight-store East Coast acquisition closed for CAD 24 million in July and is being integrated; two LOIs represent four stores.

• Target acquisitions with at least CAD 2 million revenue and CAD 350,000 normalized EBITDA; weighted-average purchase multiple is 6x normalized EBITDA.

Acquisition diligence and growth

• Evaluate each deal on normalized economics, prescription trends, staffing and managing-pharmacist coverage; willing to walk away from stores that cannot be staffed.

• Project cumulative normalized EBITDA gains of 7.5%-15% over the first three years of ownership; management clarified this is cumulative, not annual CAGR.

• Value creation includes purchasing efficiencies, network programs, expanded pharmacist services and automation; one purchasing change added CAD 80,000 in store profitability in one year.

• Two smaller pharmacies were acquired and folded into existing stores in the prior year; one example combined a 10,000-prescription store with a 70,000-prescription location.

• Acquired stores remain under their existing banners to preserve customer and staff continuity; planned store improvements can include rebranding, automation and expansion, including a planned doubling of one store early next year.

Ownership model and cash generation

• Co-ownership loans let pharmacists buy in alongside the operator; 16 of 17 stores are expected to have a co-owner, including two where sellers retained 10% and 25% stakes.

• CIBC acquisition term loan was initially CAD 17.5 million and upsized to CAD 27.5 million through an accordion; management cited ample capacity for current LOIs.

• Target leverage is 2.0-2.5x as a high-water mark; funding options may include the market when conditions are attractive, alongside scaling debt for individual deals.

• Maintenance CapEx is 20-40 bps of sales and EBITDA-to-free-cash-flow conversion exceeds 70%; a CAD 300,000 automation robot had a stated payback of 2.5 years.