Business
LevelJump Healthcare Corp. Announces the Acquisition of Four Diagnostic Imaging Clinics
Toronto, Ontario--(Newsfile Corp. - October 11, 2023) - LevelJump Healthcare Corp. (TSXV: JUMP) (...
About this update from Leveljump Healthcare Corp.
[{"type":"text","content":"LevelJump Healthcare Corp. Announces the Acquisition of Four Diagnostic Imaging ClinicsToronto, Ontario--(Newsfile Corp. - October 11, 2023) - LevelJump Healthcare Corp. (TSXV: JUMP) (OTCQB: JMPHF) (FSE: 75J) (\"LevelJump\" or the \"Company\"), a Canadian leader in B2B telehealth solutions, is very pleased to announce that, further to its news release dated September 14, 2023, it has closed the acquisition of four Alberta-based independent health facilities (\"IHFs\").Located in Calgary, Alberta and its surrounding areas, these IHFs provide a multitude of services, including x-ray and ultrasound, as well as the opportunity to expand to fluoroscopy and bone mineral density scans. The IHFs are currently generating just under $5 million annually in revenues with EBITDA of approximately $1 million.This acquisition marks a significant expansion of the Company's footprint, bringing the total number of IHF clinics owned by the Company to eight, with seven currently operational and one in the construction phase and expected to open in January 2024.The purchase price of $5.76 million was paid by way of $4.63 million in cash and the issuance of 1,130,000 Preferred Share Units at a price of $1.00 per Unit (see the Company's news release dated September 14, 2023).Funding was provided through a combination of a term loan from the TD bank of $3.46 million (the \"TD Loan\") to the Company's wholly owned subsidiary, Canadian Teleradiology Services, Inc. (\"CTS\"), and cash on hand. The TD Loan is amortized over 10 years with an initial interest rate of 8.7%, with monthly payments of principal and interest and an annual payment of 25% of excess EBITDA towards principal.The TD Loan is secured through a general security agreement (a \"GSA\") over all of the assets of CTS and the newly acquired IHF's as well as corporate guarantees and GSA's provided by the IHF's over their operating assets. LevelJump is also providing a limited recourse guarantee which is only realizable to the extent of any deficiency in the event of a sale of CTS.Final consent of the TSX Venture Exchange to this acquisition has been granted.Management is actively developing and implementing a business strategy designed to increase patient volumes at both the new acquired and previously owned IHF clinics. The Company plans to achieve this through the execution of marketing initia...