Nova Leap Update on Future Plans, Proposed Purchase of Rhode Island Home Care Business Assets and Quarterly Financial Update
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HALIFAX, August 18, 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 overview of future plans for the Company, 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 and six months ended June 30, 2017.
Nova Leap Future Plans
Nova Leap continues to explore and evaluate opportunities for acquisition of Home Care businesses in line with the Company’s area of focus. Management plans to complete up to 4 acquisitions in 2018 of similar size and structure to the AAHC business in Rhode Island. Management intends to open up to 6 new locations by the end of 2018 as part of the Company’s expansion strategy to new markets under the existing licenses held by Nova Leap subsidiaries.
“Management continues to see significant growth opportunities in the Northeastern United States market. We have a deliberate geographical focus and our deal flow is strong. We believe strongly in the private pay model and will continue to examine opportunities in less competitive areas, including more rural areas that have demographics to support home care requirements”, said Chris Dobbin, President and CEO of Nova Leap.
Rhode Island Acquisition Update
Nova Leap continues to work through the conditions to closing for its proposed acquisition of AAHC in Rhode Island and expects to close the acquisition by early September. 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 has been conditionally approved by the Department of Health and Management will continue to work with the Department of Health to fulfill the conditions to finalize the license approval and issuance anticipated by early September
Revenues of AAHC for the years ended 2016 and 2015 were US$2.091 million (audited) and US$2.057 (unaudited), respectively.
“The AAHC acquisition is a key step in the early phases of our growth plans”, said Chris Dobbin, President & CEO of Nova Leap. “AAHC has a wonderful history of service in the State of Rhode Island and employs the type of individuals that we want to be associated with going forward. We are anxious to work with the current team.”.
Nova Leap First Quarter Financial Results
Financial results for the three and six months ended, June 30, 2017 include revenue of $39,836 and $79,967, respectively and net loss of $164,063 and $322,846, respectively (all amounts are in U.S. dollars).
This news release should be read in conjunction with the unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2017, notes to the financial statements, and management’s discussion and analysis for the three and six months ended June 30, 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 email@example.com
John Boidman, Vice President Renmark Financial Communications Inc. T: 416 644-2020 or 514 939-3989 firstname.lastname@example.org
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