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Kovo HealthTech Corporation Signs Binding LOI to Acquire Midwest Medical Billing, Service Inc.
Company On-Track to Complete 9th Acquisition Vancouver, British Columbia--(Newsfile Corp. - J...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Corporation Signs Binding LOI to Acquire Midwest Medical Billing, Service Inc.Company On-Track to Complete 9th AcquisitionVancouver, British Columbia--(Newsfile Corp. - June 14, 2021) - Kovo HealthTech Corporation (TSXV: KOVO) (\"Kovo\" or the \"Company\"), a leader in Revenue Cycle Management (\"RCM\") and healthcare technology, announced today it has entered into a binding letter of intent (the \"Binding LOI\") to acquire Midwest Medical Billing, Service Inc. (\"Midwest Medical Billing\" or the \"Seller\").Midwest Medical Billing is an Omaha, Nebraska-based Revenue Cycle Management specialist firm that has been in business for more than 11 years and provides RCM services for more than 100 clients. Under the terms of the Binding LOI, the Company will, through a wholly-owned subsidiary, purchase substantially all of the assets of Midwest Medical Billing, including associated trademarks, trade names, brand names goodwill, customer lists and customer contracts.Proposed Deal Anticipated to Close in Early July 2021 As consideration for the acquisition of Midwest Medical Billing, the Company will: (i) pay to the Seller cash consideration of USD$50,000; and (ii) issue 1,111,881 common shares of the Company (the \"Consideration Shares\") at a price per Consideration Share of USD$1.01 (approximately CAD$1.20 per Consideration Share), subject to compliance with the policies of the TSXV. All Consideration Shares will be subject to a four month hold under applicable securities laws.The completion of the acquisition is subject to the satisfaction of a number of closing conditions, including receipt of the approval of the TSXV. Provided that all closing conditions are satisfied, the acquisition is expected to close in early July 2021. There can be no assurance that the transaction will be completed on the terms contained herein or at all.The acquisition is expected to be immediately accretive to Kovo as Midwest Medical Billing recorded Trailing Twelve Month (TTM) revenues of $1.123 million USD with EBITDA of approximately 17% net of synergies. The consideration shares would represent approximately 3% pro forma dilution at today's price for a 29% revenue increase based on Kovo's Q1 revenues of $.820 million USD.\"New Efficiencies\" Advance Kovo's Strategic Acquisition Strategy \"We're excited about the potential to r...