Nova Leap Closes Private Placement and Retains Market Stabilization and Liquidity Services
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN
HALIFAX, January 8, 2017 – NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or the “Company”), a company focused on the home health care industry, closes its previously announced non- brokered private placement for proceeds of $475,000 by the sale of units of the Company at a price of $0.20 per unit. The proceeds from the private placement will be used for working capital purposes.
Each unit is comprised of one common share of the Company and a one-half common share purchase warrant. Two half-warrants entitle the holder to acquire one common share of the Company for $0.35 for a period of 24 months from the closing date of this private placement. The common shares and warrants are subject to a 4 month hold period. Certain officers and directors of the Company subscribed for an aggregate of 1,507,500 units.
In connection with the offering, a finder’s fee was paid consisting of a cash payment of $7,260 and 36,300 non-transferable finder’s fee warrants. Each finder’s fee warrant will be exercisable into one common share of the Company at $0.35 per share for a period of 24 months from the closing date.
Retention of Market Stabilization and Liquidity Services
Nova Leap is pleased to announce that, subject to regulatory approval, it has retained Mackie Research Capital Corporation to provide its market stabilization and liquidity services to the Company in compliance with the policies and guidelines of the TSX Venture Exchange and other applicable legislation.
Mackie will trade shares of Nova Leap on the TSXV for the purposes of maintaining a reasonable market and improving the liquidity of Nova Leap’s common shares. The agreement between Mackie and the Company may be terminated by either party with written notice of 60 days and the Company has agreed to pay Mackie $3,000 per month during the term, payable quarterly in advance. The Company and Mackie act at arm’s length, but Mackie may provide investment banking services to Nova Leap and Mackie and/or its clients may have an interest, directly or indirectly, in the securities of Nova Leap. The agreement is principally for the purposes of maintaining market stability and liquidity for the Company’s common shares and is not a formal market making agreement. There are no performance factors contained in the agreement between Mackie and the Company and Mackie will not receive any shares or options from the Company as compensation for services it will render.
About Mackie Research Capital Corporation
Mackie is one of Canada’s largest independent full-service investment firms, and proudly traces its roots back to 1921. Mackie is privately owned by many of its 300 employees. As a fully integrated national investment dealer, Mackie offers a full complement of capital markets and wealth management services to private clients, institutions and growth companies.
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.