Kovo HealthTech Corporation On-Track to Complete 9th Acquisition As we work through the final stages of our first announced acquisition as a publicly-traded company, I wanted to reach out and update our investors and supporters on the company’s progress, priorities and vision. Investor Support Critical to Making TSXV: KOVO a Reality First, a heartfelt thank you to everyone for your ongoing support for the company as we worked our way through a longer than anticipated, COVID-era reverse merger and go-public transaction. Many of you have reached out to our team individually to offer words of encouragement, support and advice – and without our investors championing the company, our technology and our vision – our go-public journey to build continued shareholder value would not be possible. Our Acquisition Strategy Since the company officially went public – watch our TMX intro and welcome video here – we have been hard at work to quickly ramp up our acquisition model and infrastructure. - One June 14th, Kovo announced a Binding LOI to acquire US-based Midwest Medical, a trusted, profitable and family-run Revenue Cycle Management Business located in Nebraska.
- The business generates $1.123 million USD in revenue and generates 17% EBITDA at time of acquisition. The deal represents approximately a 3% pro forma dilution at today’s price for an expected 29% increase in revenue -- and is anticipated to be an important part of Kovo’s growth in 2021.
- Pending due diligence and TSXV review, we expect to close the deal in early July – and the acquisition represents immediate accretive revenue for Kovo.
- In the past year alone, Kovo has increased our market reach from 24 States to 42 States. The company now processes $71M annually in RCM claims – and our customers service approximately 2.6M patients, prior to the recent acquisition.
- In the last 12 months ending March 31, 2021, Kovo achieved 166% revenue growth in our RCM platform and our Company has posted positive adjusted EBITDA for the past eight quarters.
- The team continues to actively pursue additional RCM opportunities as part of our acquisition strategy, from a prospective pool of approximately 15,000 RCM business in the USA. These deals are expected to be accretive immediately to revenue and EBITDA, and we look forward to keeping investors updated.
You can learn more about Kovo’s growth strategy – and our anticipated timeline to close acquisitions in an anticipated, average 6-week timeframe – by reviewing our Investor Deck and Investor Fact Sheet, which you can access any time at www.kovo.co Watch our Video Curious to understand more about Revenue Cycle Management? Watch a brief two-minute video, featuring Kovo Executive Chairman Dr. Peter Bak, explaining why RCM is so important in providing quality post-pandemic healthcare. What to Expect As we head into Summer, our team is already looking ahead to future opportunities. We’re excited about the potential to continue to roll new partners into our Kovo HealthTech Corporation family of RCM specialist firms over the coming weeks and months – and we are grateful to all of you for joining with us on this exciting and journey as we look to build one of North America’s fastest-growing RCM specialist aggregators. |