HALIFAX, Nova Scotia, April 16, 2018 (GLOBE NEWSWIRE) — NOVA LEAP HEALTH CORP. (TSXV:NLH) (“Nova Leap” or “the Company”), a company focused on the home health care industry, has completed the acquisition of the business assets of Home Health Solutions, Inc. (“the Vendor”) located in Holyoke, Massachusetts for $1.2 million. The purchase price for the acquisition was paid with $1 million in cash, partially financed by a demand loan of $0.75 million from a Canadian Schedule 1 Bank, and a $0.20 million promissory note issued to the Vendor. The execution of the definitive agreement and related information pertaining to this acquisition was previously announced on March 19, 2018. All amounts are in United States dollars (“USD”) unless otherwise specified.
“We are excited to work with the team at Home Health Solutions,” said Chris Dobbin, President & CEO of Nova Leap. “It is a privilege to work with such wonderful people.”
Nova Leap incorporated a subsidiary, Nova Leap Health MA II, Inc., which has acquired the business assets of the Vendor, including customer contracts and intellectual property, and will continue to operate under the name Home Health Solutions. The acquisition represents Nova Leap’s fifth investment in New England and second in Massachusetts. Nova Leap now has approximately 330 employees in Vermont, New Hampshire, Rhode Island and Massachusetts.
Nova Leap Reaches $9 million Annualized Recurring Revenue
The acquisition of the Vendor is expected to be immediately accretive and, when combined with existing Nova Leap subsidiaries, is expected to result in 350,000 annualized recurring client service hours. Nova Leap’s annualized recurring revenue run rate is approximately $9 million following the acquisition of the Vendor. Nova Leap’s recurring client service hours are paid primarily by clients, the Department of Veteran Affairs or through long term care insurance plans.
This press release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
This article originally appeared in an article on GlobeNewswire.