Nova Leap Health Corp. enters into Term Sheet to amend its Credit Agreement for up to an Additional $7 million to Support Continued Growth
November 26 2024 - 4:30PM
NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”),
a growing home health care organization, is pleased to announce
that it has entered into an agreement to amend its existing credit
agreement (the “Credit Agreement”) with BMO Bank of Montreal for
new credit facilities (the “Credit Facilities”). The amended Credit
Agreement will provide up to an additional $7 million of available
credit to support the Company’s long-term growth strategy.
All amounts are in United States dollars unless otherwise
specified.
The Credit Facilities consist of
non-readvanceable demand acquisition lines to assist with business
acquisitions, including the Nova Scotia acquisition announced on
October 29, 2024, the Florida acquisition announced on October 15,
2024, and future business acquisitions approved by the lender, in
addition to the Company’s existing facilities for working capital
and day-to-day operating needs. The acquisition lines are available
as CAD prime (prime rate plus 1.50%) and USD base rate (base rate
plus 1.50%) loans, as well as fixed rate loans with rates
determined at the time of booking.
The Credit Facilities contain financial and
other covenants and security in favour of the lender which are
customary for facilities of this nature, including security over
the assets of the Company and its subsidiaries, and are conditional
upon obtaining coverage under Export Development Canada’s Export
Guarantee Program.
Management Comments
“We are pleased to secure the new Credit
Facilities. Our ability to complete this transaction reflects the
consistent cash flow and financial results that we have produced.
With our strong Adjusted EBITDA over the past six quarters, our
capital structure can comfortably support increased debt, while
still maintaining financial flexibility,” said Chris LeBlanc, Chief
Financial Officer of Nova Leap.
“The successful negotiation of the Credit
Facilities provides us with greater financial flexibility to
execute on our growth strategy that consists of investing in our
business to drive organic growth and in pursuing strategic
acquisitions,” said Chris Dobbin, President & CEO of Nova
Leap.
About Nova Leap
Nova Leap is an acquisitive home health care
services company operating in one of the fastest-growing industries
in the U.S. & Canada. The Company performs a vital role within
the continuum of care with an individual and family centered focus,
particularly those requiring dementia care. Nova Leap achieved the
#42 ranking on the 2021 Report on Business ranking of Canada’s Top
Growing Companies, the #2 ranking on the 2020 Report on Business
ranking of Canada’s Top Growing Companies and the #10 Ranking in
the 2019 TSX Venture 50™ in the Clean Technology & Life
Sciences sector. The Company is geographically diversified with
operations in 10 different U.S. states within the New England,
Southeastern, South Central and Midwest regions as well as in Nova
Scotia, Canada.
NON-IFRS MEASURES:
This release contains references to certain
measures that do not have a standardized meaning under IFRS as
prescribed by the International Accounting Standards Board (“IASB”)
and are therefore unlikely to be comparable to similar measures
presented by other companies. Rather, these measures are provided
as additional information to complement IFRS measures by providing
a further understanding of operations from management’s
perspective. Accordingly, non-IFRS financial measures should not be
considered in isolation or as a substitute for analysis of
financial information reported under IFRS. The Company presents
non-IFRS financial measures, specifically Adjusted EBITDA (as such
term is hereinafter defined), as well as supplementary financial
measures such as annualized revenue and annualized adjusted EBITDA.
The Company believes these non-IFRS financial measures are
frequently used by lenders, securities analysts, investors and
other interested parties as a measure of financial performance, and
it is therefore helpful to provide supplemental measures of
operating performance and thus highlight trends that may not
otherwise be apparent when relying solely on IFRS financial
measures.
Adjusted Earnings before interest, taxes,
amortization and depreciation (“Adjusted EBITDA”), is calculated as
income from operating activities plus amortization and depreciation
and stock-based compensation expense. The most directly comparable
IFRS measure is income from operating activities.
FORWARD LOOKING
INFORMATION:
Certain information in this press release may
contain forward-looking statements, such as statements regarding
availability of the Credit Facilities, the closing of the
acquisitions (including timing) and its expected impact on the
Company, financing of the acquisitions, and plans regarding future
acquisitions and business growth. This information is based on
current expectations and assumptions, including assumptions
described elsewhere in this release and those concerning general
economic and market conditions, the satisfaction of conditions to
closing the Credit Facilities and the acquisitions, availability of
working capital necessary for conducting Nova Leap’s operations,
availability of desirable acquisition targets and financing to fund
such acquisitions, and Nova Leap’s ability to integrate its
acquired businesses and maintain previously achieved service hour
and revenue levels, that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. Risks that could cause results to differ from those
stated in the forward-looking statements in this release include
staff and supply shortages, regulatory changes affecting the home
care industry or government programs utilized by the Company, other
unexpected increases in operating costs and competition from other
service providers. All forward-looking statements, including any
financial outlook or future-oriented financial information,
contained in this press release are made as of the date of this
release and included for the purpose of providing information about
management's current expectations and plans relating to the future,
and these statements may not be appropriate for other purposes. The
Company assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those reflected in the forward-looking statements
unless and until required by securities laws applicable to the
Company. Additional information identifying risks and uncertainties
is contained in the Company's filings with the Canadian securities
regulators, which filings are available at www.sedarplus.com.
CAUTIONARY STATEMENT:
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For further information:
Chris Dobbin, CPA, ICD.D
Director, President and CEO
Nova Leap Health Corp.
E:cdobbin@novaleaphealth.com
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