Rennova Health released their financial results for the second quarter of 2017 and provided a business update to shareholders.
Rennova Health (NASDAQ:RNVA) released their financial results for the second quarter of 2017 and provided a business update to shareholders.
As quoted in the press release:
On July 12, 2017, the Company announced plans to spin off its Advanced Molecular Services Group (“AMSG”) as an independent publicly traded company by way of a tax-free distribution to Rennova stockholders. Completion of the spinoff is expected to occur at the end of September 2017 and is subject to numerous conditions, including effectiveness of a Registration Statement on Form 10 to be filed with the Securities and Exchange Commission, and consents, including under various funding agreements previously entered into by Rennova. The strategic goal of the spinoff is to create two public companies, each of which can focus on its own strengths and operational plans. In addition, after the spinoff, each company will provide a distinct and targeted investment opportunity.
“We continue to work diligently to improve our financial condition and to unlock shareholder value, and took several steps during the second quarter and recent weeks to grow revenues while further reducing operating expenses,” said Seamus Lagan, Rennova’s chief executive officer. “We were delighted to open the Big South Fork Medical Center in Tennessee on August 8th. Opening this rural hospital was an important event as emergency services now have been restored to the community. At the same time, this hospital, which we purchased out of bankruptcy for $1.0 million, demonstrates Rennova’s commitment to rebuild and diversify our revenue stream from our historic focus on diagnostics services to include the provision of healthcare services. For fiscal 2015, the last full year of operation, the hospital had unaudited annual revenues of approximately $12 million and a normalized EBITDA of approximately $1.3 million. We anticipate that revenues will return to 2015 levels within the next 12 months.