Toronto, Ontario--(Newsfile Corp. - February 8, 2022) - Leveljump Healthcare Corp. (TSXV: JUMP) (OTCQB: JMPHF) (FSE: 75J) ("Leveljump" or the "Company"), a Canadian leader in B2B telehealth solutions, is pleased to announce that, further to its news release of January 11, 2022, it has closed the acquisition of three Ontario-based independent health facilities ("IHFs").
The purchase was structured as an all cash purchase with an aggregate value of $4.3 million. Funding was provided through a combination of a term loan from the TD bank of $3.2 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 2 year interest rate of 4.02%, with monthly payments of principal and interest and an annual payment of 25% of excess EBITDA towards 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's as well as corporate guarantees and GSA's provided by the IHF's over their operating assets. Leveljump is also providing a limited recourse guarantee which is only realizable to the extent of any deficiency in the event of a sale of CTS.
As at December 31, 2021, the IHFs reported combined revenue of $1,350,000 with an EBITDA of over $400,000.
The vendor has executed a non-competition agreement for a period of 5 years but will provide transitional support services to Leveljump for a period of 30 days following closing.
Management will be developing and executing its business plan to expand the patient volumes at the IHF clinics. Two of the clinics have been in business for over twenty years and have established relationships within their community. Both of these IHF clinics have shown growth during Covid and with the backlog in the healthcare system, CTS believes it can increase business at these locations. The third IHF clinic has been in business for only a few years and is the only IHF in its community. CTS will implement various marketing efforts to increase revenues at this location.
"As we have stated previously, this transaction represents a significant milestone for the Company as it shows our execution on the next phase of our business plan of growth through acquisitions of businesses with strong revenue and cash flow," said Mitch Geisler, CEO. "We are very excited to be able to add both the capacity and revenue from these IHFs to our operations."
About Leveljump Healthcare
Leveljump Healthcare Corp., (TSXV: JUMP) (OTCQB: JMPHF) (FSE: 75J) is a healthcare company with a focus on profitable telehealth solutions as well as primary care services in radiology. The Company's subsidiary, CTS, provides off-site radiology readings for hospital emergency rooms and is a leader in the teleradiology space in Ontario. As part of our growth strategy, we are acquiring healthcare companies that have strong revenue and cash flow, with room for organic growth.