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Kovo HealthTech Corporation Signs Non-Binding Acquisition LOI; Announces Private Placement of Up to $2.5 Million
Company Enters Diligence Phase on 10th Acquisition Funds to be Used Accelerate Kovo's Acqu...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Corporation Signs Non-Binding Acquisition LOI; Announces Private Placement of Up to $2.5 MillionCompany Enters Diligence Phase on 10th AcquisitionFunds to be Used Accelerate Kovo's Acquisition and Growth Strategy Vancouver, British Columbia--(Newsfile Corp. - September 2, 2021) - Kovo HealthTech Corporation (TSXV: KOVO) (\"Kovo\" or the \"Company\") — a leader in Revenue Cycle Management (\"RCM\") and healthcare technology — announced today has entered into a non-binding letter of intent (the \"Non-Binding LOI\") to acquire an RCM specialist firm based in the US Midwest (the \"Seller\").The Company also confirmed it has entered into a marketed placement offering agreement with Research Capital Corporation (\"RCC\") to provide financing of up to CAD$2.5 million. The net proceeds are intended to be used to complete prospective acquisitions in support of Kovo's growth strategy. Building Value with Immediate, Accretive Acquisition Revenue and Earnings Growth \"Kovo selects its acquisitions based on the anticipated ease of integration of the target's revenues into our platform, and an expected 20-50% operational efficiency gain in EBITDA,\" explains Kovo CEO Greg Noble. Noble says the company's focused acquisition strategy was a significant factor in its ability to generate 43% year-over-year organic growth on its core RCM software and services business for the quarter ending June 30, 2021. Proposed Deal Enters Due DiligenceUnder the terms of the Non-Binding LOI, the Company has the option to, through a wholly-owned subsidiary, purchase substantially all of the assets of the seller, including associated trademarks, trade names, brand names goodwill, customer lists and customer contracts.The completion of the acquisition is subject to due diligence and 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 Fall 2021. Detailed terms and conditions will be disclosed in further press releases and online at www.sedar.com as the proposed transaction proceeds. There can be no assurance that the transaction will be completed on the terms contained herein or at all.Private Placement Partnership with RCC Under the terms of the agreement, RCC will act as lead agent a...