Toronto, Ontario--(Newsfile Corp. - September 8, 2022) - Leveljump Healthcare Corp. (TSXV: JUMP) (OTCQB: JMPHF) (FSE: 75J) ("Leveljump" or the "Company"), a Canadian leader in B2B telehealth solutions, is pleased to announce that its' wholly owned subsidiary Canadian Teleradiology Services, Inc. ("CTS") is in the process of establishing a new x-ray and ultrasound center. CTS has signed definitive agreements to acquire an existing Independent Health Facility ("IHF") license to operate a diagnostic imaging center, from a private Ontario vendor, as well as signed an agreement to lease a location in Toronto, Ontario.
The purchase price of the license is $1.4 million including $1.2 million cash and $200,000 worth of JUMP common shares valued on the date of closing to a maximum of 2 million shares. The Company has already paid a $60,000 deposit towards the purchase price and will pay a further $300,000 from cash on hand at closing with the balance to be from bank financing. The transaction is targeted to close on October 31, 2022, and is subject to several conditions, including but not limited to, required regulatory approval and securing an institutional credit facility to fund the balance of the cash portion of the purchase price.
The new center is to be called Yonge Sheppard X-ray & Ultrasound, and the Company has signed an agreement to lease approximately 3,000 square feet at the Yonge Sheppard Center, in north central Toronto to house the new center. The Company anticipates the new location to open in early 2023 and become the flagship imaging center for the Company in Canada.
The Company expects to be operational in the new location in the first quarter of 2023.
JUMP expects the new location to generate up to $2 million per year in annual revenues by 2024 and add approximately $0.005 per share in EBITDA to future annual earnings. The Company is raising its EBITDA estimates for 2023 to between $0.015 to $0.02 per share.
About LevelJump Healthcare
LevelJump Healthcare Corp., (TSXV: JUMP) is building a national telehealth medical company and brand, currently by providing teleradiology (remote radiology) services to its client hospitals and imaging centers. Additionally, JUMP owns and operates independent healthcare facilities (IHF's) focused on diagnostic imaging.
ON BEHALF OF THE BOARD OF DIRECTORS OF
LEVELJUMP HEALTHCARE CORP.
Mitchell Geisler, Chief Executive Officer
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains "forward-looking information" within the meaning of applicable securities laws relating to the Company's business plans and the outlook of the Company's industry. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by applicable securities laws. The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, Canadian Teleradiology Services, Inc., their securities, or their respective financial or operating results (as applicable).
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The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.
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