- Leveljump Healthcare (JUMP) has provided the following update on its pending acquisition of Telehospital Corp.
- The total proposed purchase price has been reduced to US$6,000,000 to be paid in installments
- Leveljump expects the process to register Telehospital as a hospital will take approximately six months
- The transaction is scheduled to close on June 30th, 2022
- Leveljump Healthcare is a leader in business-to-business (B2B) telehealth solutions
- LevelJump Healthcare Corp. (TSXV:JUMP) is up 64.71 per cent on the day, trading at C$0.14 per share at 10:26 am ET
Leveljump Healthcare (JUMP) has provided the following update on its pending acquisition of Telehospital Corp.
The total proposed purchase price has been reduced to US$6,000,000, to be paid as follows:
- US$2,000,000 cash on closing, less a deposit of US$100,000 which was paid on signing of the original purchase agreement
- US$500,000 cash three months after client services have begun on the execution of a pending services agreement with an identified client hospital
- 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
- Leveljump will issue 6,000,000 shares to the vendor at the rate of 25 per cent on closing, and 25 per cent on each of the 6th, 12th and 18th month thereafter
Leveljump has also agreed to pay US$500,000 cash for certain medical assets. $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 Telehospital personnel to enter into a three-year employment agreement and a US$1,000,000 investment into Telehospital by Leveljump following the approval of an expansion business plan by the parties.
Telehospital will enter into Master Services Agreement (MSA) with its associated company, Vigilias LLC, the principal contractor with client hospitals. Under the MSA, Telehospital will recognize a management fee as its revenue, pending the granting of a hospital license by the State of Kansas to Telehospital. Once granted, the MSA will end and all contracts and revenue will be held and recognized by Telehospital directly.
Leveljump expects the process to register Telehospital as a hospital will take approximately six months.
Closing has now been rescheduled for June 30th, 2022 and is subject to a number of conditions including TSXV consent and completion of financing by Leveljump to satisfy the cash portion of the purchase price.
Mitch Geisler, CEO of Leveljump commented on the news.
“The amended payment price and terms more accurately reflect the structure of income flow through expected in the future by Telehospital once it is licensed. Leveljump will be acquiring a brand with significant upside but at a much-reduced initial cost. With this acquisition, we will be a broad-based telehealth company offering critical medical care to underserviced communities. We are look forward to closing this transaction and expanding our business in a very meaningful way.”
Any securities issued will be subject to regulatory hold periods of four months from the date of issue.
Leveljump Healthcare is a leader in business-to-business (B2B) telehealth solutions.
LevelJump Healthcare Corp. (TSXV:JUMP) is up 64.71 per cent on the day, trading at C$0.14 per share at 10:26 am ET.