Business
Leveljump to Acquire Telehospital Corp.
Toronto, Ontario--(Newsfile Corp. - November 16, 2021) - Leveljump Healthcare Corp. (TSXV: JUM...
About this update from Leveljump Healthcare Corp.
[{"type":"text","content":"Leveljump to Acquire Telehospital Corp.Toronto, Ontario--(Newsfile Corp. - November 16, 2021) - Leveljump Healthcare Corp. (TSXV: JUMP) (OTCQB: JMPHF) (FSE: 75J) (\"Leveljump\" or the \"Company\"), a Canadian leader in B2B telehealth solutions, is pleased to announce that further to its press release dated October 1st, it has signed a definitive agreement to acquire a mid-west U.S. based telehealth business Telehospital Corp. (\"Telehospital\"), from certain private U.S. vendors.The proposed purchase price is approximately US$7.13 million which will be paid to the vendors as follows: (a) US$100,000 is to be paid as a cash deposit upon the signing of definitive agreements; (b) US$4.9 million cash on closing, with $1 million of this amount held in escrow for 24 months; (c) the Company will issue on closing to the vendors a three year US$500,000 5% note which is convertible into common shares of the Company at the rate of C$0.25 per common share; and (d) the Company will issue 4 million common shares to the vendors at a price of C$0.20 per share to be released to the vendors at the rate of 25% on closing and 25% on each of the 6th, 12th and 18th month after closing. In addition, a bonus payment of US$1,000,000 will be payable if revenues of the business meet certain gross revenue targets within 36 months. The Company has also agreed to invest US$1,000,000 for expansion capital into Telehospital within 60 days of Telehospital developing a new expansion plan following the acquisition closing.Key personnel of Telehospital will be required to enter into exclusive three-year employment agreements to remain and build the telehealth business.Closing is targeted for the end of January 2022. Closing will be subject to a number of conditions including, but not limited to, required regulatory approvals including the TSX Venture Exchange, satisfactory due diligence and obtaining financing to fund the cash balance of the purchase price.Through its patented technology and telehealth services, Telehospital and its affiliate telehealth provider have grown their client base to over 20 facilities and physician practices with annual revenues for 2021 approaching US$6 million and EBITDA of almost $1 million. 2020 revenues were US$4,716,416 with a net income of US$711,042. Telehospital and its affiliate telehealth provider have US$2,130,940 in assets a...