Business
Rennova Health Returns to “Stock Day” to Provide Update on Capitalization and Current Activity
Rennova Health Returns to “Stock Day” to Provide Update on Capitalization and Current Activity.
About this update from Rennova Health, Inc.
[{"type":"text","content":"\nWEST PALM BEACH, Fla., July 26, 2018 (GLOBE NEWSWIRE) -- Rennova Health, Inc. (OTCQB:RNVA) (OTCQB:RNVAW), (“Rennova” or the “Company”), a vertically integrated provider of industry-leading diagnostics and supportive software solutions to healthcare providers that acquired its second rural hospital in Tennessee on June 1, 2018, returns to “Stock Day” to provide an update on how recent dilution of ownership is not necessarily dilution of value, along with developing plans for future growth.\n The interview began with Everett Jolly voicing shareholder concerns on dilution of ownership and asking President and CEO Seamus Lagan about working capital versus growth capital causing dilution and discussing a smaller percentage ownership versus potential increased value. Rennova has recently embarked on buying hospitals raising a need for additional capital to cover the cost of acquisition and to carry the cash need of operations through the change of ownership process. Mr. Lagan explained that the Company had no option but to raise money to manage the business through the last two difficult years. The ambition is to continue investment in current hospital operations and buy additional hospitals in the same geographic location. The Company believes that delivery on its business plan and current growth momentum will facilitate much cheaper capital in the future as historical risk abates. The fact that the Company was able to secure the capital it did is a vote of confidence by investors in Rennova’s ability to succeed in coming years. Rennova intends to strengthen its hospital management team in the immediate future to meet the demands of the new business and other opportunities and has recently hired a new CFO with many years’ experience working with rural hospitals. This new knowledge and expertise will be a huge benefit to Rennova in its expansion efforts. Mr. Jolly asked Mr. Lagan about Rennova’s investment plans, referencing the recently announced new equipment acquisition, a 64-slice CT-scanner in one of the hospitals. Mr. Lagan indicated that this is only one of the investments planned with this being the first. The hospital had an old machine that directly impacted revenue because it did not provide doctors with the more comprehensive information they now require from CT scans...