Nova Leap Health Corp. Announces Execution of Definitive Agreement to Acquire Home Care Business in Oklahoma
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HALIFAX, Nova Scotia, Aug. 04, 2021 (GLOBE NEWSWIRE) — 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.
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.