Business
Nova Leap Health Corp. Update on Proposed Purchase of Rhode Island Home Care Business Assets and Resumption of Trading
(via TheNewswire) HALIFAX / TheNewswire / June 30, 2017 - NOVA LEAP HEALTH CORP. (TS...
About this update from Nova Leap Health Corp.
[{"type":"text","content":"Nova Leap Health Corp. Update on Proposed Purchase of Rhode Island Home Care Business Assets and Resumption of Trading(via TheNewswire)\n\n \nHALIFAX / TheNewswire / June 30, 2017 - NOVA LEAP HEALTH CORP. (TSXV: NLH) (\"Nova Leap\" or the \"Company\"), a company focused on the home health care industry, continues to work through the remaining conditions to close its proposed acquisition of All About Home Care (\"AAHC\") in Rhode Island, including the home health care license transfer. Nova Leap has submitted a \"Change in Effective Control\" application (\"the Application\") to the Rhode Island Department of Health Centre for Health System Policy and Regulation (\"Department of Health\"). The Application is under review and management anticipates a decision by the Department of Health by the end of August, 2017. Nova Leap was previously successful with a license application in the State of New Hampshire during the acquisition of the business of Northern Family Home Care. \n\n\n \nNova Leap has incorporated a subsidiary, Nova Leap Health RI, Inc. to acquire the business assets of AAHC, including customer contracts and intellectual property. Upon closing, Nova Leap Health RI, Inc. will assume the office lease and create new employment agreements with the existing employee group.\n\n\n \nRevenues of AAHC for the years ended 2016 and 2015 were US$2.091 million (audited) and US$2.057 (unaudited), respectively. Gross profit for the years ended December 31, 2016 and 2015 were US$886,361 (audited) and US$847,451 (unaudited), resulting in net income of US$252,890 (audited) and US$258,350 (unaudited) for each respective year.\n\n\n \nNova Leap has signed a Letter of Agreement with Bank of Montreal for a non-revolving demand loan of US$600,000 which will be used to finance the acquisition of AAHC, subject to certain closing conditions, including the successful transfer of the home health care license. \n\n\n \n\"We are pleased with the progress to date in meeting the conditions for closing and look forward to closing the acquisition. While the license application is under review, we continue to pursue other acquisition and expansion opportunities as part of our growth strategy\", noted Chris Dobbin, President and CEO of Nova Leap.\n\n\n \nUpon announcement of the Fundamental Acquisition on April 21, 2017, Nova Leap's stock was halted pursu...