Business
Kovo HealthTech Corporation Secures Funding for up to CAD$8.8M
Company Partners with Flow Capital Corp. to Power Strategic Acquisitions Vancouver, British C...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Corporation Secures Funding for up to CAD$8.8MCompany Partners with Flow Capital Corp. to Power Strategic AcquisitionsVancouver, British Columbia--(Newsfile Corp. - November 12, 2021) - Kovo HealthTech Corporation (TSXV: KOVO) (the \"Company\" \"Kovo\") — a leader in healthcare Billing-as-a-Service — announced today it has entered into an agreement (the \"Loan Agreement\") to borrow up to approximately CAD$8.8 million from Flow Capital Corp. (\"Flow\") to fund the Company's ongoing acquisition growth strategy.Accelerating Growth with Minimal Dilution \"We're excited to move forward with our partners at Flow to continue to deliver on our acquisition and growth model, while minimizing dilution for shareholders,\" explains Kovo CEO Greg Noble, who adds the Company's consistent cash flow and proven ability to add immediate accretive growth through \"roll-up\" acquisitions means the Company can manage short-term debt agreements as a way to accelerate its growth. Earlier this month, Kovo HealthTech Corporation announced an agreement to acquire The Cvikota Company, a Wisconsin-based medical billing specialist firm that has been in business for more than 50 years, providing SaaS-style billing services for physicians, health providers and healthcare clinics across the United States with offices in Wisconsin and Tennessee. The Loan Agreement with Flow is structured as a non-revolving senior secured multi-draw term facility to fund acquisitions. Under the terms of the Agreement, up to US$7 million, or approximately CAD$8.8 million (the \"Amount\") may be loaned to Kovo in a series of draws. The first draw will be under CAD$2 million, (the \"First Tranche Loan\"). Pursuant to the First Tranche Loan, the Company will issue to the lender 2,133,943 warrants to acquire common shares of the Company (\"Warrants\") at an exercise price of CAD$0.35 per common share. The repayment terms are interest-only, and in the range of 15 to 16 per cent for the term of the loan with a balloon payment after 36 months from the first tranche being drawn and are subject to certain financial covenants. This transaction is subject to approval of the TSX Venture Exchange.About Kovo HealthTech Corporation and US Healthcare Billing-as-a-ServiceKovo HealthTech Corporation is a growing healthcare technology company that specializes in B...