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 it has signed definitive agreements to acquire three diagnostic imaging clinics, also known as independent healthcare facilities, ("IHFs"), from a private Ontario vendor.
The purchase price is an all-cash deal of $4.3 million of which $250,000 has been paid as a deposit. The transaction is targeted to close in the first half of December and is subject to a number of conditions, including but not limited to, required regulatory approval, satisfactory due diligence and securing an institutional credit facility to fund the balance of the purchase price. In the event the transaction does not close, the deposit will be refunded to the Company less a $25,000 break fee payable to the vendor.
Through a total of nine modality imaging licenses, these IHFs offer medical imaging including x-ray, ultrasound, and mammography scans. Two of the IHFs have serviced their regions for 15 and 20 years respectively. The third IHF was opened within the last two years and presents a growth opportunity in an underserviced community. The IHFs are all located in Ontario.
Combined, the two mature IHF's are currently reporting revenue of approximately $1.4 million with EBITDA of over $400,000. The third IHF has revenues of approximately $200,000 and negative EBITDA of approximately $100,000.
"Today is a milestone for the company," said Mitch Geisler, CEO. "We are now executing on the next phase of our business plan with the acquisition of these three imaging clinics. We will be increasing the revenues of our subsidiary Canadian Teleradiology Services to approximately $8 million annually with approximately $1 million in EBITDA. We look forward to increasing patient scan volumes and expanding the new clinics. Additionally, we will hope to have synergies and cost efficiencies with our current operations, allowing for increased profitability."
About Leveljump Healthcare
LevelJump Healthcare Corp., (TSXV: JUMP) (OTCQB: JMPHF) (FSE: 75J) is building a national medical diagnostic imaging company and brand, primarily by providing teleradiology (remote radiology) services to its client hospitals and imaging centers. Additionally, JUMP plans to expand through the acquisition of independent healthcare facilities focused on diagnostic imaging as well as acquiring new disruptive imaging technologies.
ON BEHALF OF THE BOARD OF DIRECTORS OF
LevelJump Healthcare Corp.
Mitchell Geisler, Chief Executive Officer
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains "forward-looking information" within the meaning of applicable securities laws relating to the Company's business plans and the outlook of the Company's industry. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by applicable securities laws. The Company undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Company, Canadian Teleradiology Services, Inc., their securities, or their respective financial or operating results (as applicable).
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