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HALIFAX, Nova Scotia, Nov. 26, 2024 (GLOBE NEWSWIRE) -- 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.
