Business
Leveljump to Acquire U.S. Mid-West Telehealth Business
Toronto, Ontario--(Newsfile Corp. - October 1, 2021) - Leveljump Healthcare Corp. (TSXV: JUMP)...
About this update from Leveljump Healthcare Corp.
[{"type":"text","content":"Leveljump to Acquire U.S. Mid-West Telehealth BusinessToronto, Ontario--(Newsfile Corp. - October 1, 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 on September 28th it has signed a term sheet to acquire a mid-west U.S. based telehealth business (\"Targetco\"), 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; (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 into the business within 60 days following closing for expansion capital.Key personnel of Targetco will be required to enter into exclusive three-year employment agreements to remain and build the telehealth business.Definitive agreements are expected to be completed and executed by mid-October with closing targeted for the first half of December. 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, Targetco has grown its 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. Targetco had US$2,130,940 in assets and US$1,485,860 in liabilities as at December 31, 2020. Targetco is located in the U.S. mid-west and has been in operation for seven years. Targetco is focused on remote medical care,...