Nova Leap Health Corp. Announces Execution of Definitive Agreement
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HALIFAX, Nova Scotia, April 26, 2024 (GLOBE NEWSWIRE) -- NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”), a growing home health care organization, is pleased to announce that it has executed a definitive agreement (the “Agreement”), dated April 25, 2024, to acquire a home care services company (“the Target”) with operations in Massachusetts. The Target reported unaudited annualized 2023 revenues of approximately $800,000 and Adjusted EBITDA of approximately $100,000. 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 $300,000 of which $250,000 is payable with cash on closing and $50,000 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 expected to occur within the first two weeks of May.
“As mentioned in my March 7 Letter to Shareholders, Nova Leap is in an excellent position to re-engage its acquisition program,” said Chris Dobbin, President & CEO of Nova Leap. “We are pleased to execute our first acquisition of 2024 in Massachusetts, a state where we currently operate several agencies and where we see significant potential for growth in the future. We’re looking forward to working with a great group of people upon closing of the acquisition.”
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 #42 ranking on the 2021 Report on Business ranking of Canada’s Top Growing Companies, 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 10 different U.S. states within the New England, Southeastern, South Central and Midwest regions as well as in Nova Scotia, Canada.
NON-IFRS MEASURES:
This release contains references to certain measures that do not have a standardized meaning under IFRS as prescribed by the International Accounting Standards Board (“IASB”) and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management’s perspective. Accordingly, non-IFRS financial measures should not be considered in isolation or as a substitute for analysis of financial information reported under IFRS. The Company presents non-IFRS financial measures, specifically Adjusted EBITDA (as such term is hereinafter defined), as well as supplementary financial measures such as annualized revenue and annualized adjusted EBITDA. The Company believes these non-IFRS financial measures are frequently used by lenders, securities analysts, investors and other interested parties as a measure of financial performance, and it is therefore helpful to provide supplemental measures of operating performance and thus highlight trends that may not otherwise be apparent when relying solely on IFRS financial measures.