Nova Leap Update on Proposed Purchase of Rhode Island Home Care Business Assets and Quarterly Financial Update
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HALIFAX, May 29, 2017– NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or the “Company”), a company focused on the home health care industry, is pleased to provide an update on the previously announced acquisition of the assets of All About Home Care, LLC (“AAHC”) as well as to announce the release of financial results for the three months ended March 31, 2017.
Rhode Island Acquisition Update
Nova Leap continues to work through the conditions to closing for its proposed acquisition of AAHC in Rhode Island. Nova Leap has submitted a “Change in Effective Control” application (“the Application”) to the Rhode Island Department of Health Centre for Health System Policy and Regulation (“Department of Health”). The Application is under review and management anticipates a decision by the Department of Health by the end of August. Nova Leap was previously successful with a license application in the State of New Hampshire during the acquisition of the business of Northern Family Home Care.
Revenues of AAHC for the years ended 2016 and 2015 were US$2.091 million (audited) and US$2.057 (unaudited), respectively.
“The All About Home Care acquisition is an important step as management examines further expansion opportunities for Nova Leap in New England”, said Chris Dobbin, President & CEO of Nova Leap. “In addition to non-medical services, AAHC also offers skilled nursing. We can leverage that knowledge and those processes and apply them to our New Hampshire business with the thought of accelerating growth in that area”.
Nova Leap First Quarter Financial Results
Financial results for the three months ended, March 31, 2017 include revenue of $40,131 and net loss of $158,809 for the period (all amounts are in U.S. dollars).
During the period from year-end to the date of this press release, Nova Leap has executed several initiatives in its New Hampshire home care business with the aim of increasing revenue and profitability including the following:
- Identification of the next area for geographic expansion and expects to execute on the expansion by Q3-17.
- Investigation of licensing requirements for expanded service line to include private pay medical services to clients.
- Increased hourly billing rates for new clients resulting in higher average revenue per client hour.
- Changed the minimum weekly/hourly service requirements to accept clients with average weekly hours < 20 which resulted in securing all several new clients.
- Marketing efforts including meeting with discharge personnel at various facilities and joining the Home Care Association of NH which provides access to other industry participants and management has attended or is registered for related conferences and trade shows which is expected to expand NFHC’s profile in the market and state.
This news release should be read in conjunction with the unaudited condensed interim consolidated financial statements for the three months ended March 31, 2017, notes to the financial statements, and management’s discussion and analysis for the three months ended March 31, 2017, which have been filed on SEDAR.
About Nova Leap
The Home Care Providers industry is becoming one of the fastest growing healthcare industries in Canada and the United States. Home care saves patients billions of dollars every year by treating them in their own homes instead of in hospitals. An aging population, the prevalence of chronic disease, growing physician acceptance of home care, medical advancements and a movement toward cost-efficient treatment options from public and private payers have all fostered industry growth. Nova Leap is focused on a highly fragmented market of small privately-held companies providing patients one on one care in their homes. Nova Leap’s post acquisition organic growth strategy is to increase annual revenue per location through a combination of increased employee investment, including training, focused sales and marketing efforts, billing rate increases, expansion of geographical coverage, and improved referral sources.
FORWARD LOOKING INFORMATION:
Certain information in this press release may contain forward-looking statements. This information is based on current expectations 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. 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.
For further information:
Christopher Dobbin, CPA, CA, Director, President and CEO Nova Leap Health Corp., T: 902 401 9480 F: 902 482 5177 firstname.lastname@example.org
John Boidman, Vice President Renmark Financial Communications Inc. T: 416 644-2020 or 514 939-3989 email@example.com
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