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HALIFAX, Nova Scotia, June 30, 2021 (GLOBE NEWSWIRE) -- NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”), a home health care organization ranked #2 on the 2020 Report on Business ranking of Canada’s Top Growing Companies, is pleased to announce that it has provided notice to holders of the Company’s 8.0% unsecured subordinated convertible debentures due January 16, 2025 with a principal amount of CAD$215,000 (the “Debentures”) that Nova Leap will be exercising its option to convert the entire principal amount of Debentures outstanding into common shares of the Company (“Common Shares”) at a conversion price of CAD$0.52 (the “Forced Conversion”). Earlier in June, CAD$541,000 of the debentures due January 16, 2025 were voluntarily converted at a conversion price of CAD$0.52.
Pursuant to the terms of the Debentures, if, at any time after the first anniversary of the issue date of the Debentures, the daily volume weighted average price of the Common Shares on the TSX Venture Exchange exceeds CAD$0.78 for 20 consecutive trading days, the Company may elect to exercise its right of Forced Conversion. The Forced Conversion is expected to be completed on or about August 3, 2021. Accrued and unpaid interest under the Debentures to the conversion date will be paid to the holders in accordance with the Debentures.
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 #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 7 different U.S. states within the New England, South-Central and Midwest regions as well as Nova Scotia, Canada.
FORWARD LOOKING INFORMATION:
Certain information in this press release may contain forward-looking statements, such as statements regarding the completion of the Forced Conversion, future expansions and cost savings, the Company’s expected annualized recurring revenue run rate and plans regarding future acquisitions and financings. This information is based on current expectations and assumptions, including assumptions concerning general economic and market conditions, availability of working capital necessary for conducting Nova Leap’s operations, 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 the impact of the COVID-19 pandemic or any recurrence, including government regulations or voluntary measures limiting the Company’s ability to provide care to clients (such as shelter-in-place orders, isolation or quarantine orders, distancing requirements, or closures or restricted access procedures at facilities where clients reside), increased costs associated with personal protective equipment and sanitization supplies, staff and supply shortages; regulatory changes affecting the home care industry, 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. 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.sedar.com.
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