Nova Leap Health Corp. has announced significant developments in its growth strategy, including an expansion in Nova Scotia and an update on its acquisition efforts in Florida.
Nova Leap Health Corp. (TSXV: NLH), a growing player in the home health care sector, has executed a definitive agreement to acquire two affiliated home care service companies operating in Nova Scotia. This transaction is valued at CAD$1,380,000 and is structured on a cash-free and debt-free basis, with the full amount payable upon closing. The acquisition is expected to enhance Nova Leap’s geographical footprint within the province, adding two new territories to its operations. The targets of this acquisition reported unaudited revenues of approximately CAD$2.56 million and an Adjusted EBITDA of about CAD$276,000 for the fiscal year 2023. Funding for this transaction will be sourced through a debt facility from the company’s lender, repayable over five years. Dana Hatfield, Chair of the Board of Nova Leap, emphasized the company’s commitment to expanding its market presence through strategic acquisitions. He noted that this move aligns with their ongoing M&A program aimed at enhancing service delivery across new regions.
This acquisition is categorized as a Non-Arm’s Length transaction under TSX Venture Exchange policies as the vendors are associated with Chris Dobbin, a director and significant shareholder of Nova Leap. As such, it requires approval from disinterested shareholders, which will be sought at an upcoming meeting anticipated for December. Despite these complexities, the transaction is projected to be immediately accretive to Nova Leap’s financial performance, with no finder fees associated with the deal.
In addition to its Nova Scotia expansion, Nova Leap provided an update regarding its acquisition of assets from a Florida-based home care services business. This transaction involves total consideration of USD$1,636,000, with USD$1,316,000 payable in cash at closing and the remainder structured as a promissory note. Like the Nova Scotia deal, this acquisition also qualifies as a Non-Arm’s Length transaction requiring disinterested shareholder approval.
Nova Leap operates within one of the fastest-growing sectors in North America, home health care, focusing on providing individualized care services, particularly for patients requiring dementia care. The company has established itself as a leader in this fragmented market and has been recognized for its rapid growth in recent years. With operations spanning across 10 U.S. states and Canada, Nova Leap continues to pursue both organic growth and strategic acquisitions to bolster its service offerings and expand its market reach. As these transactions unfold, stakeholders will be closely monitoring their impact on Nova Leap’s operational capabilities and financial performance moving forward.
