Medivolve Cancels Agreement to Acquire Karland Health; Completes Shares for Debt Settlement

Rhea-AI Summary

Medivolve Inc. (OTC:COPRF) has cancelled its agreement to acquire Karland Health, LLC after due diligence showed the acquisition wouldn't be strategically beneficial. Medivolve's CEO, Doug Sommerville, emphasized that the company is still committed to its telehealth strategy, which will be elaborated on in a corporate update webinar scheduled for February 22 at 1 pm ET. Additionally, Medivolve completed a shares for debt settlement, issuing 10,958,024 common shares at $0.46 per share to settle <$5.04 million> in debt.

Positive

• Completion of shares for debt settlement, improving financial position.
• Webinar planned to clarify telehealth strategy, potentially boosting investor confidence.

Negative

• Cancellation of the acquisition of Karland Health may limit growth opportunities.
• Due diligence indicated Karland Health was not sufficiently accretive.

Medivolve will host a webinar Monday, February 22nd at 1 pm ET with medical advisor Dr. Glenn Copeland to discuss Collection Sites telehealth strategy.

TORONTO, Feb. 19, 2021 (GLOBE NEWSWIRE) -- Medivolve Inc. (“Medivolve” or the “Company”) (NEO:MEDV; OTC:COPRF; FRA:4NC) announces the cancellation of the agreement to acquire 100% of Karland Health, LLC. As noted in the initial press release dated February 11^th, 2021, the completion of the transaction to acquire Karland Health was subject to customary closing conditions, including due diligence to the satisfaction of Medivolve. After completing further due diligence, management determined that the acquisition of Karland Health would not be sufficiently accretive for the Company.   

“The letter of intent for Karland Health was signed to secure potential assets for the Company and to help the market understand Medivolve’s telehealth strategy,” says Doug Sommerville, CEO of Medivolve. “After completing further due diligence, we arrived at the conclusion that Karland Health did not sufficiently align with our strategy. We will be hosting a webinar next Monday to better elaborate on our telehealth plans and help investors understand the potential for the Company and its subsidiaries.”

Corporate Update Webinar

Medivolve will be hosting a Corporate Update webinar, Monday, February 22^nd at 1 pm ET that will provide investors with an update on the Company's recent business developments and telehealth strategy.

Registration Link: https://us02web.zoom.us/webinar/register/WN_Nw7_20QGRqyn5BHMWlYZnQ

Specifically, the webinar will feature Medivolve CEO Doug Sommerville and Dr. Glenn Copeland to discuss Collection Sites telehealth strategy. Dr. Glenn Copeland is a medical advisor to Medivolve and CEO of Glenco Medical, a Medivolve partner company. With Dr. Copeland’s guidance, Medivolve and Collection Sites are developing telehealth plans that include remote patient monitoring and virtual care, among other offerings. Collection Sites intends on leveraging its network of sites and large customer database to market these new services and launch a series of mobile clinics.

About Shares for Debt Settlement

Medivolve is pleased to announce that it has completed its shares for debt settlements with certain creditors that were previously announced on February 11, 2021 (the “Shares for Debt Settlement”) after being granted approval by the NEO Exchange.

Pursuant to the Shares for Debt Settlement, the Company has issued 10,958,024 common shares of the Company at a deemed price of $0.46 per share in satisfaction of outstanding debt of $5,040,691. The common shares issued pursuant to the Shares for Debt Settlement are subject to a four month and one day hold period expiring on June 19th, 2021.

About Collection Sites

Collection Sites COVID-19 testing centers offer convenient access to rapid antibody and antigen tests - which take 8-10 minutes to administer and provide results in less than 24 hours. The sites also offer regular RT-PCR. The testing centres are powered by Alcala Testing and Analysis Services, a CLIA-licensed laboratory based in San Diego, California. All tests can be administered with insurance coverage options. The tests results can be communicated via text or email and can be accompanied with a certificate of good health via a HIPAA-compliant smartphone application.

For more information about the pop-up labs, the available sites and services visit www.testbeforeyougo.com.

About Medivolve Inc.

Medivolve Inc. (NEO:MEDV; OTC:COPRF; FRA:4NC) seeks out disruptive technologies, ground-breaking innovations, and exclusive partnerships to help combat COVID-19 and generate remarkable risk-adjusted returns for investors. Specifically, Medivolve offers investors a diversified investment in the COVID-19 medical space across three areas; prevention, detection, and treatment.

Medivolve has a team of renowned global medical and business advisors that have developed a proprietary business strategy to capitalize on high-margin opportunities in the COVID-19 space. This panel includes prominent immunologist Dr. Lawrence Steinman and Dr. Glenn Copeland, who has 45 years of experience in orthopaedic treatment, foot and ankle care, and sports medicine.

Medivolve’s primary focus is to provide convenient and assessable medical services for testing of the COVID-19 virus to help combat the pandemic. This is achieved largely through two acquisitions: 100% of Collection Sites, LLC and 28% of Colombian Sanaty IPS. Collection Sites is setting up a series of COVID-19 testing sites across the United States with appointments and payments will be handled through the online portal www.testbeforeyougo.com. Sanaty is setting up a series of full-service medical clinics offering a complete COVID-19 testing solution.

For additional information, please contact:

Doug Sommerville, CEO
Doug.Sommerville@medivolve.ca 

For investing enquiries, please contact:

info@medivolve.ca 

For US media enquiries, please contact:

Veronica Welch
veronica@vewprmedia.com

Cautionary Note Regarding Forward-looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the cancellation of the agreement to acquire Karland Health; the shares for debt settlement transaction; the business and operations of the Company, and the Company’s ability to execute its business plan. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER NEO EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

FAQ

Why did Medivolve cancel the acquisition of Karland Health?

Medivolve cancelled the acquisition due to findings in due diligence that indicated it would not be strategically beneficial.

What is the date of the corporate update webinar for Medivolve?

The corporate update webinar is scheduled for February 22 at 1 pm ET.

What financial action did Medivolve take regarding debt?

Medivolve completed a shares for debt settlement, issuing 10,958,024 common shares to settle over $5 million in debt.

What will be discussed in the upcoming Medivolve webinar?

The webinar will discuss Medivolve's telehealth strategy and recent business developments.

What is the impact of the shares for debt settlement on Medivolve's finances?

The shares for debt settlement improves Medivolve's financial position by reducing outstanding debt.