Shares of Leveljump Healthcare Corp (OTCMKTS:JMPHF) (TSXV: JUMP) have been moving within a narrow range over the past week.
Market Reaction
On Wednesday, JMPHF stock ended flat at $0.0738 with 1K shares, compared to its average volume of 233 shares. The stock moved within a range of $0.0738 – 0.0738 after opening trade at $0.0738.
Key Details
Canadian industry leader in B2B health solutions, Leveljump Healthcare Corp (OTCMKTS:JMPHF) (TSXV: JUMP) has officially announced its closing of the acquisition of three Ontario-based independent health facilities (IHFs).
The purchase was structured as an all cash purchase, with an aggregate value of $4.3 million. Funding was secured by combining a term loan from the TD bank of $3.2 million, to the company’s fully owned subsidiary, Canadian Teleradiology Services, Inc. along with cash on hand.
The TD loan is amortized over 10 years with an initial 2 year interest rate of 4.02%, with monthly payments of principal and interest and an annual payment of 25% of excess EBITDA towards principal. It is secured via a general security agreement over all assets of Canadian Teleradiology Services, newly acquired IHF’s, and corporate guarantees and general security agreements provided by the IHF’s over their operating assets.
The combined revenue of the IHFs as on December 31, 2021 was $1,350,000 with an EBITDA of over $400,000. Management is set to focus on expanding patient volumes at IHF clinics. Two of the clinics have been operating for over two decades, and have shown significant growth during the pandemic. Due to the enormous strain on the healthcare system, Canadian Teleradiology Services believes it can boost business at these locations. Efforts are underway to increase revenue at the third IHF clinic (the only one in its community) as well.
Key Quote
“As we have stated previously, this transaction represents a significant milestone for the Company as it shows our execution on the next phase of our business plan of growth through acquisitions of businesses with strong revenue and cash flow,” said Mitch Geisler, CEO. “We are very excited to be able to add both the capacity and revenue from these IHFs to our operations.”
