Business
Kovo HealthTech Corporation Signs Agreement to Acquire The Cvikota Company, Inc.
Company Expects 10th Acquisition to Add Accretive Revenue Growth Vancouver, British Columbia-...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Corporation Signs Agreement to Acquire The Cvikota Company, Inc.Company Expects 10th Acquisition to Add Accretive Revenue GrowthVancouver, British Columbia--(Newsfile Corp. - November 2, 2021) - Kovo HealthTech Corporation (TSXV: KOVO) (the \"Company\" \"Kovo\") — a leader in healthcare Billing-as-a-Service (\"BAAS\") — announced today it has entered into an agreement (the \"Agreement\") to acquire The Cvikota Company, Inc. (\"The Cvikota Company\" or the \"Seller\").The Cvikota Company is 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. Under the terms of the Agreement, Kovo HealthTech Corporation will, through a wholly-owned subsidiary (\"Buyer\"), purchase substantially all of the assets of the Seller, including associated trademarks, trade names, brand names goodwill, intellectual property, customer lists and customer contracts.Proposed Deal Anticipated to Close in November As consideration for the acquisition, the Company will: (i) pay to the Seller cash consideration of approximately $1,375,000 million USD paid at closing (the \"Closing Payment\"), (ii) a promissory note (the \"Note\") in the amount of $687,500 USD, with interest at the rate of five percent (5%) per annum. and (iii) in January 2022, the Buyer will cause Kovo to issue common shares having a value, in USD, equal to: gross receipts for 2021 actually collected from certain accounts linked to the acquired business, less the Closing Payment, less the face amount of the Note. The pricing of the shares will be the greater of the (i) the 10 day value weighted average of the closing price at issuance, (ii) the Market Price as defined in the TSX Venture Exchange Policy 1.1 on the date prior to issuance, and (iii) CAD$0.40. The maximum number of shares that may be issued shall not result in a new control person under the policies of the TSXV. Principal of the Note shall be due as to one-half on November 1, 2022 and the remaining half on November 1, 2023. Immediately Accretive Acquisition Aligned with Kovo Growth Model The acquisition is expected to be immediately accretive to Kovo as Cvikota's Trailing Twelve Month (TTM) revenues o...