Nova Leap Health Corp. Announces Execution of Definitive Agreement to Acquire Home Care Business in Oklahoma
August 04 2021 - 4:01PM
NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”),
a home health care organization ranked #2 on the 2020 Report on
Business ranking of Canada’s Top Growing Companies, is pleased to
announce that it has executed a definitive agreement (the
“Agreement”), dated August 3, 2021, to acquire a home care services
company (“the Target”) located in Oklahoma. The Target reported
unaudited revenues of approximately $2.3 million for the 2020
calendar year. All amounts are in United States Dollars (“USD”)
unless otherwise specified.
Under the terms of the Agreement, the
acquisition is to be made for total consideration of $1.1 million
of which $800,000 is payable with cash on closing and $300,000 is
by way of a promissory note repayable over a two-year period.
The acquisition is expected to be immediately
accretive, is at arm’s length and there are no finder fees to be
paid. Closing of the acquisition is subject to lender approval and
state licensing.
“We’re pleased to continue with our expansion in
Oklahoma after first entering the market in late 2019,” said Chris
Dobbin, President & CEO of Nova Leap. “We are very much looking
forward to welcoming the new team to our organization and working
with them to expand services in the area.”
About Nova Leap
Nova Leap is an acquisitive home health care
services company operating in one of the fastest-growing industries
in the U.S. & Canada. The Company performs a vital role within
the continuum of care with an individual and family centered focus,
particularly those requiring dementia care. Nova Leap achieved the
#2 ranking on the 2020 Report on Business ranking of Canada’s Top
Growing Companies and the #10 Ranking in the 2019 TSX Venture 50™
in the Clean Technology & Life Sciences sector. The Company is
geographically diversified with operations in 7 different U.S.
states within the New England, South- Central and Midwest regions
as well as Nova Scotia, Canada.
FORWARD LOOKING
INFORMATION:
Certain information in this press release may
contain forward-looking statements, such as statements regarding
future expansions and cost savings, expected forgiveness of PPP
loans, timing of receipt of ERC, and plans regarding future
acquisitions and business growth. This information is based on
current expectations and assumptions, including assumptions
concerning general economic and market conditions, availability of
working capital necessary for conducting Nova Leap’s operations,
availability of desirable acquisition targets and financing to fund
such acquisitions, and Nova Leap’s ability to integrate its
acquired businesses and maintain previously achieved service hour
and revenue levels, that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. Risks that could cause results to differ from those
stated in the forward-looking statements in this release include
the impact of the COVID-19 pandemic or any recurrence, including
government regulations or voluntary measures limiting the Company’s
ability to provide care to clients (such as shelter-in-place
orders, isolation or quarantine orders, distancing requirements, or
closures or restricted access procedures at facilities where
clients reside), increased costs associated with personal
protective equipment and sanitization supplies, staff and supply
shortages, regulatory changes affecting the home care industry,
other unexpected increases in operating costs and competition from
other service providers. All forward-looking statements, including
any financial outlook or future-oriented financial information,
contained in this press release are made as of the date of this
release and included for the purpose of providing information about
management's current expectations and plans relating to the future.
The Company assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those reflected in the forward-looking statements
unless and until required by securities laws applicable to the
Company. Additional information identifying risks and uncertainties
is contained in the Company's filings with the Canadian securities
regulators, which filings are available at www.sedar.com.
CAUTIONARY STATEMENT:
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For further information:
Chris Dobbin, CPA, CA, Director, President and CEO Nova Leap Health Corp.,
T: 902 401 9480 F: 902 482 5177
E:cdobbin@novaleaphealth.com
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