Nova Leap Health Corp.’s (TSXV:NLH) consolidated annualized recurring revenue run rate is now in excess of US$7 million
SmallCapPower | February 27, 2018: Another deal completed in Northeastern U.S. On February 26, 2018, Nova Leap Health Corp. (TSXV:NLH) announced that it completed the acquisition of Family Tree Home Care located in Shrewsbury, Massachusetts for US$2.1 million. The deal is expected to be immediately accretive. Since October 2016, the Company has completed four acquisitions and now has operations in five locations within Vermont, New Hampshire, Rhode Island, and Massachusetts, employing more than 250 employees. The Company’s consolidated annualized recurring revenue run rate is now in excess of US$7 million.
Previous year’s acquisitions are fully integrated. The Company acquired All About Home Care (“AAHC”) and Armistead Senior Care (“Armistead”) in September 2017 and October 2017, respectively. Both operations are fully integrated and performing well. Armistead’s and AAHC’s 2018 recurring service hours are both ahead of budget for the first six weeks, at 8.5% and 3.6% respectively. Nova Leap is beginning to realize economies of scale by integrating these platforms within its growth-by-acquisition model.
On February 23, 2018, Nova Leap completed a $1.7 million financing at $0.25/unit. Each unit included one common share and one half-24 month warrant with a strike price of $0.375. The proceeds were used partially to fund the Family Tree Home Care acquisition (mentioned above) and for working capital purposes.
Nova Leap continues to execute on their corporate strategy. The Company is focused on acquiring and organically growing Private Pay Non-Medical and Skilled Home Care Companies, and the recent acquisition illustrates that the Company can tap the capital markets to fund their M&A growth strategy. As the full impact of their last three acquisitions will only be reflected after Q1/18 financials are reported, we believe it is a good time to look at Nova Leap as an investment opportunity.
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