Leveljump Healthcare Corp. Provides Update on Telehospital Purchase

About this update from Leveljump Healthcare Corp.

[{"type":"text","content":"Leveljump Healthcare Corp. Provides Update on Telehospital PurchaseToronto, Ontario--(Newsfile Corp. - May 19, 2022) - Further to its news releases of November 16, 2021, and March 2, 2022, Leveljump Healthcare Corp. (TSXV: JUMP) (OTCQB: JMPHF) (FSE: 75J) (\"Leveljump\" or the \"Company\"), a Canadian leader in B2B telehealth solutions, wishes to announce the following update on its Telehospital Corp. purchase.Following extensive due diligence and discussions with the vendors of Telehospital Corp., the parties have agreed to amend the payment terms of the purchase price to more accurately reflect that a significant portion of the purchase price is derived from a series of contingent payments based on revenue growth. Accordingly, the total proposed purchase price has been reduced to US$6,000,000 which will now be paid as follows: (a) US$2,000,000 cash on closing, less a deposit of US$100,000 which was paid on signing of the original purchase agreement; (b) US$500,000 cash three months after client services have begun on the execution of a pending services agreement with an identified client hospital; (c) contingent payments of up to US$2,000,000 based, in part, on gross revenues received between the date of closing and fiscal years 2023 and 2024; and (d) an increase in the number of shares of Leveljump to be issued to the vendors from 4,000,000 shares to 6,000,000 shares at a price of C$0.20 to be released to the vendors at the rate of 25% on closing, and 25% on each of the 6th, 12th and 18th month thereafter. The Company has also agreed to pay US$500,000 cash for certain medical assets and IP of which US$200,000 will be paid on closing and the remaining US$300,000 will be due following the receipt of FDA approval to the use of the assets. All contingency payments will be due within thirty days of each target being met. If the Company fails to pay any contingent cash payment when due, the Company will be obligated to issue 1,500,000 shares at a price of C$0.20 per share as a penalty for each missed payment.All other terms of the agreement remain in place including the requirement of key personnel of Telehospital to enter into an exclusive three-year employment agreement and an investment of US$1,000,000 into Telehospital by Leveljump within six months following the approval of an expansion business plan by the parties.Concurrent w...

More updates from Leveljump Healthcare Corp.