Nova Leap Health Corp. Announces Execution of Definitive Agreement to Acquire Home Care Business in South Central U.S.

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

HALIFAX, Nova Scotia, Sept. 08, 2020 (GLOBE NEWSWIRE) -- NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”), a 2019 TSX Venture 50 ranked company focused on the home health care industry, is pleased to announce that it has executed a definitive agreement (the “Agreement”), dated September 4, 2020, to acquire a home care services company (“the Target”) located in the South Central region of the United States. The Target reported unaudited revenues of approximately $1.032 million and EBITDA of approximately $66,000 for the year ended December 31, 2019. All amounts are in United States Dollars (“USD”) unless otherwise specified.

Under the terms of the Agreement, the acquisition is to be made for total consideration of $250,000 of which $200,000 is payable with cash on closing and $50,000 is by way of a promissory note repayable over a fifteen-month period bearing interest of 4% per annum. The promissory note will be secured by a corporate guarantee by Nova Leap Health Corp. and is subordinated to Nova Leap’s primary commercial lender. Closing of the acquisition is subject to final due diligence. The acquisition is at arm’s length and there are no finder’s fees to be paid.

“Our expansion into the South-Central region a year ago has gone very well,” said Chris Dobbin, President & CEO of Nova Leap. “We view the South-Central region as a growth area for us similar to the significant growth we have experienced in New England.”

About Nova Leap

Nova Leap is an acquisitive home health care services company operating in one of the fastest-growing industries in the U.S. & Canada. The Company performs a vital role within the continuum of care with an individual and family centred focus, particularly those requiring dementia care. Nova Leap achieved the #10 Ranking in the 2019 TSX Venture 50 in the Clean Technology & Life Sciences sector. The Company is geographically diversified with operations in 6 different U.S. states: Vermont, New Hampshire, Massachusetts, Rhode Island, Oklahoma and Ohio as well as Nova Scotia, Canada.