- Nova Leap Health (NLH) has executed a definitive agreement to acquire a home care services company in New England, USA
- The unnamed acquisition target reported unaudited revenues of approximately C$2.23 million for the year ending September 30, 2019
- Nova Leap will pay a consideration of approximately $864,800, consisting of $609,000 cash and a promissory note for the rest
- The acquisition allows the company to expand into a new area and capitalise on increasing demand for private in-home care
- Nova Leap Health (NLH) is up 1.5 per cent and is currently trading at 34 cents per share
Nova Leap Health (NLH) has executed a definitive agreement to acquire a home care services company in New England, USA.
In the year ending September 30, 2019, the unnamed acquisition target reported unaudited revenues of approximately C$2.23 million. It also recorded earnings before interest, taxes, depreciation, and amortisation (EBITDA) of approximately $203,000.
For the acquisition, Nova Leap will pay an aggregate consideration of approximately $864,800, consisting of a cash payment and promissory note.
The cash payment of approximately $609,000 will be made upon the closing of the acquisition, while the promissory note for roughly $255,500 will be repayable over three years
The promissory note will bear interest at a rate of five per cent per year during the three-year repayment period. It will also be secured by a corporate guarantee from Nova Leap.
This acquisition allows the company to expand its reach in the United States and to take advantage of demand for home health care services.
Nova Leap’s President and CEO, Chris Dobbin, commented on the company’s growing potential for business in light of the acquisition.
“We have been very successful in the New England region. Upon closing, this acquisition furthers our growth while allowing us to expand to a new area within the region.
“Nova Leap is well positioned to capitalise on the demand for private pay in-home care and we expect further growth from the region,” he said.
Nova Leap Health (NLH) is up 1.5 per cent and is trading at 34 cents per share at 12:30pm EDT.