President & CEO Letter to Shareholders

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

HALIFAX, Nova Scotia, March 07, 2024 (GLOBE NEWSWIRE) -- Dear Nova Leap Health Corp. (“Nova Leap” or the “Company”) Shareholders:

All amounts are in United States dollars unless otherwise specified.

Nova Leap is a story of entrepreneurship born from the experience of one of my close family members with dementia requiring home care. The positive impact my family saw from home care led to the creation of the Company in 2016. At that time, I believed that we could provide families impacted by dementia with a level of service that would have a meaningful impact on their lives and that the demand for our services would grow over time due to an aging demographic. I am reminded every day of why this industry is so important to families and the challenge in meeting the generational demand that will exist for decades to come.

Today, Nova Leap is a very different company than it was in 2016, when we started with a mere CAD$500,000, but one very much with a continued focus on providing exceptional in-home care to families. As we move through the early stages of 2024, I would like to recognize the significant contribution from our team for the results achieved during 2023. Nova Leap is in excellent financial condition and is actively seeking M&A opportunities.

From my perspective, the highlights from 2023 are as follows:

1. We established Nova Leap as a cash flow positive company;
   
   
2. We paid off all long-term bank debt during the year, ahead of schedule, positioning the Company to re-engage its acquisition program;
   
   
3. We achieved record annual consolidated Adjusted EBITDA of $1.477 million (CAD$2.0 million), which was more than the three previous years combined and a 124% increase over 2022 results;
   
   
4. In my 2022 year end comments, I specifically addressed the changes we had made in the U.S. operating segment. We delivered on these changes with a 73% year over year increase in U.S. segment Adjusted EBITDA;
   
   
5. We ended the year with record Adjusted EBITDA of $571K (CAD$778K) in Q4, the Company’s third straight quarter of record Adjusted EBITDA;
   
   
6. Nova Leap’s accounts receivable collection rate of 99.7% remained exceptional and consistent with the prior years range of 99.7% - 99.9% between 2020 and 2022; and
   
   
7. Insider ownership grew. During the fourth quarter, insiders continued to acquire shares in the open market bringing insider ownership to 40.61%. Insider ownership was 38.9% at the end of 2022 and 36.2% at the end of 2021.