LevelJump Healthcare Corp. (TSXV: JUMP) has completed its acquisition of four independent health facilities (IHFs) in Alberta, significantly expanding its presence in the Canadian B2B telehealth sector. These IHFs in Calgary and surrounding areas offer various services and generate nearly $5 million in annual revenues with an EBITDA of about $1 million. The acquisition was funded through cash, Preferred Share Units, and a TD Bank term loan. LevelJump now owns a total of eight IHF clinics, solidifying its position in critical care services and aiming to boost patient volumes and shareholder value.
LevelJump Healthcare Corp. (TSXV: JUMP) (OTCQB: JMPHF) (FSE: 75J) (“LevelJump” or the “Company”), a Canadian leader in B2B telehealth solutions, is very pleased to announce that, further to its news release dated September 14, 2023, it has closed the acquisition of four Alberta-based independent health facilities (“IHFs”).
Located in Calgary, Alberta, and its surrounding areas, these IHFs provide a multitude of services, including x-ray and ultrasound, as well as the opportunity to expand to fluoroscopy and bone mineral density scans. The IHFs are currently generating just under $5 million annually in revenues with EBITDA of approximately $1 million.
This acquisition marks a significant expansion of the Company’s footprint, bringing the total number of IHF clinics owned by the Company to eight, with seven currently operational and one in the construction phase and expected to open in January 2024.
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The purchase price of $5.76 million was paid by way of $4.63 million in cash and the issuance of 1,130,000 Preferred Share Units for $1.00 per Unit (see the Company’s news release dated September 14, 2023).
Funding was provided through a combination of a term loan from the TD Bank of $3.46 million (the “TD Loan”) to the Company’s wholly-owned subsidiary, Canadian Teleradiology Services, Inc. (“CTS”), and cash on hand. The TD Loan is amortized over 10 years with an initial interest rate of 8.7%, with monthly payments of principal and interest and an annual payment of 25% of excess EBITDA towards the principal.
The TD Loan is secured through a general security agreement (a “GSA”) over all of the assets of CTS and the newly acquired IHF as well as corporate guarantees and GSAs provided by the IHF over their operating assets. LevelJump also provides a limited recourse guarantee which is only realizable to the extent of any deficiency in the event of a sale of CTS.
Final consent of the TSX Venture Exchange to this acquisition has been granted.
Management is actively developing and implementing a business strategy designed to increase patient volumes at both the newly acquired and previously owned IHF clinics. The Company plans to achieve this through the execution of marketing initiatives to boost revenue and establish JUMP as a frontrunner in the field of critical care services.
“This transaction signifies a major milestone for JUMP, as we have successfully expanded our services nationwide and doubled our IHF footprint,” said Mitch Geisler, CEO. “Our immediate focus is to further develop both our new and existing services, with a dual purpose: to deliver increased value to our shareholders and to ensure critical care is readily accessible to all Canadians.”
Source: Nasdaq