FOXO TECHNOLOGIES, INC. ANNOUNCES EXECUTION OF A NON-BINDING ACQUISITION AGREEMENT FOR TWO ASSISTED-LIVING FACILITIES IN FLORIDA FOR A TOTAL CONSIDERATION OF $60 MILLION
FOXO Technologies (NYSE American: FOXO) has executed a non-binding acquisition agreement for two assisted living facilities in Florida for a total consideration of $60 million. The facilities comprise 129 and 137 units respectively, with each facility priced at $30 million including milestone-based payments.
The company aims to complete definitive agreements within 60 days, with closing expected 60-120 days thereafter, subject to due diligence and financing conditions. FOXO is considering funding through a new series of preferred stock listing. The company views these acquisitions as strategic entries into the healthcare sector's recurring revenue model, with milestone payments tied to facility revenue increases.
FOXO Technologies (NYSE American: FOXO) ha stipulato un accordo di acquisizione non vincolante per due strutture di assistenza abitativa in Florida per un importo totale di 60 milioni di dollari. Le strutture comprendono rispettivamente 129 e 137 unità, con ciascuna struttura valutata a 30 milioni di dollari, inclusi i pagamenti basati su traguardi.
L'azienda punta a completare gli accordi definitivi entro 60 giorni, con la chiusura prevista tra 60 e 120 giorni dopo, soggetta a condizioni di due diligence e finanziamento. FOXO sta considerando di finanziare attraverso una nuova serie di azioni privilegiate. L'azienda considera queste acquisizioni come ingressi strategici nel modello di entrate ricorrenti del settore sanitario, con pagamenti legati agli aumenti di fatturato delle strutture.
FOXO Technologies (NYSE American: FOXO) ha ejecutado un acuerdo de adquisición no vinculante para dos instalaciones de vida asistida en Florida por un total de 60 millones de dólares. Las instalaciones comprenden 129 y 137 unidades respectivamente, con cada instalación valorada en 30 millones de dólares, incluidos los pagos basados en hitos.
La empresa tiene como objetivo completar los acuerdos definitivos en un plazo de 60 días, con el cierre esperado entre 60 y 120 días después, sujeto a condiciones de debida diligencia y financiamiento. FOXO está considerando financiarse a través de una nueva serie de acciones preferentes. La empresa ve estas adquisiciones como entradas estratégicas en el modelo de ingresos recurrentes del sector de la salud, con pagos por hitos vinculados al aumento de ingresos de las instalaciones.
FOXO Technologies (NYSE American: FOXO)는 플로리다의 두 개의 지원 주거 시설에 대해 총 6천만 달러의 비구속 인수 계약을 체결했습니다. 이 시설들은 각각 129개와 137개의 유닛으로 구성되어 있으며, 각 시설의 가격은 3천만 달러로, 이에는 이정표 기반의 지급이 포함됩니다.
회사는 60일 이내에 최종 계약을 완료할 계획이며, 이후 60-120일 이내에 거래가 완료될 것으로 예상하고 있으며, 이는 실사 및 자금 조달 조건에 따라 달라질 수 있습니다. FOXO는 새로운 종류의 우선주 상장을 통해 자금을 조달하는 방안을 고려하고 있습니다. 회사는 이러한 인수를 의료 분야의 반복 수익 모델에 전략적으로 진입하는 것으로 보고 있으며, 이정표 지급은 시설 수익 증가와 연계되어 있습니다.
FOXO Technologies (NYSE American: FOXO) a signé un accord d'acquisition non contraignant pour deux établissements d'hébergement assisté en Floride pour un montant total de 60 millions de dollars. Les établissements comprennent respectivement 129 et 137 unités, chaque établissement étant évalué à 30 millions de dollars, y compris les paiements basés sur des jalons.
L'entreprise vise à finaliser les accords définitifs dans les 60 jours, avec une clôture prévue 60 à 120 jours après, sous réserve de la diligence raisonnable et des conditions de financement. FOXO envisage de se financer par le biais d'une nouvelle série d'actions privilégiées. L'entreprise considère ces acquisitions comme des entrées stratégiques dans le modèle de revenus récurrents du secteur de la santé, avec des paiements liés aux augmentations de revenus des établissements.
FOXO Technologies (NYSE American: FOXO) hat eine nicht verbindliche Übernahmevereinbarung für zwei betreute Wohnanlagen in Florida über insgesamt 60 Millionen Dollar abgeschlossen. Die Einrichtungen umfassen jeweils 129 und 137 Einheiten, wobei jede Einrichtung mit 30 Millionen Dollar bewertet ist, einschließlich milestones-basierten Zahlungen.
Das Unternehmen strebt an, innerhalb von 60 Tagen endgültige Vereinbarungen abzuschließen, mit einem Abschluss, der 60 bis 120 Tage danach erwartet wird, vorbehaltlich der Due-Diligence- und Finanzierungsbedingungen. FOXO erwägt die Finanzierung durch eine neue Serie von Vorzugsaktien. Das Unternehmen betrachtet diese Übernahmen als strategische Eingänge in das wiederkehrende Einnahmemodell des Gesundheitssektors, wobei die Zahlungen an die Umsatzsteigerungen der Einrichtungen gebunden sind.
- Strategic entry into assisted living sector with recurring revenue model
- Potential expansion of healthcare service offerings
- Performance-based milestone payment structure reducing upfront capital requirements
- Combined facility capacity of 266 units
- Non-binding agreement with significant execution uncertainty
- Substantial financing requirement of $60 million not yet secured
- Potential shareholder dilution through new preferred stock issuance
- Multiple contingencies including due diligence and financing conditions
Insights
This non-binding acquisition agreement represents an extraordinarily ambitious expansion attempt by FOXO Technologies, with several critical aspects requiring careful investor scrutiny:
Financing Challenge Scale: The proposed $60M acquisition value is approximately 12.5 times FOXO's current market capitalization of $4.8M, raising significant questions about execution feasibility. The company's plan to finance through preferred stock issuance could result in substantial dilution for current shareholders, depending on the terms and structure.
Asset Fundamentals: The two Florida facilities, with 266 combined units, align with mid-size assisted living facility standards. Typical assisted living facilities in Florida generate annual revenue of $45,000-$65,000 per unit at 85-90% occupancy rates. This suggests potential annual revenue of $10-15M if properly operated, though actual performance metrics of these specific facilities aren't disclosed.
Risk Assessment: Several critical risk factors emerge:
- The non-binding nature and multiple contingencies (due diligence, financing, definitive agreements) create significant execution uncertainty
- The company's lack of operational experience in assisted living facility management could impact performance
- The milestone-based payment structure, while potentially reducing initial capital requirements, may create future financial obligations
- The preferred stock financing mechanism's terms will be crucial, as they could significantly impact the capital structure and existing shareholders' rights
The strategic pivot into assisted living represents a dramatic transformation attempt, shifting from technology to healthcare operations. While the recurring revenue model is attractive, the execution risks and financing challenges are substantial given FOXO's current size and resources. The success of this initiative will heavily depend on the company's ability to secure favorable financing terms and demonstrate operational capabilities in a new sector.
MINNEAPOLIS, MN, Feb. 24, 2025 (GLOBE NEWSWIRE) -- FOXO Technologies Inc. (NYSE American: FOXO) (the “Company or FOXO”), announces that it has executed a non-binding acquisition agreement for two assisted living facilities in Florida.
One facility has 129 units, and the second facility has 137 units. The purchase price for each facility is expected to be
“We are delighted to have executed this non-binding agreement for these strategic acquisitions,” said Seamus Lagan, Chief Executive Officer of FOXO. “While we cannot confirm that due diligence will have a successful outcome or that we can successfully secure the capital for a new series of preferred stock or list this preferred stock as is being considered as a funding mechanism to complete these acquisitions, we are optimistic that we can complete these acquisitions as planned. We like the recurring revenue and cash flow model in this sector and are confident that diversifying our current services offerings in the health care sector will create significant value and opportunity for our shareholders. The Company has structured the acquisitions with milestone payments related to increased revenues at the facilities and believes these acquisitions will create a viable acquisition model for the Company to use to pursue additional, added value acquisitions for FOXO in the future.”
About FOXO Technologies Inc. (“FOXO”)
FOXO owns and operates three subsidiaries.
Rennova Community Health, Inc., owns and operates Scott County Community Hospital, Inc. (d/b/a Big South Fork Medical), a critical access designated (CAH) hospital in East Tennessee.
Myrtle Recovery Centers, Inc. operates a 30-bed behavioral health facility in East Tennessee providing inpatient services for detox and residential treatment and outpatient services for MAT and OBOT programs.
FOXO Labs, Inc. is a biotechnology company dedicated to improving human health and life span through the development of cutting-edge technology and product solutions for various industries.
For more information about FOXO, visit www.foxotechnologies.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Additional information concerning these and other risk factors are contained in the Company’s most recent filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
Contact:
Sebastien Sainsbury
ssainsbury@foxotechnologies.com
(561) 485-0151
FAQ
What is the total value of FOXO's Florida assisted living facilities acquisition?
When is FOXO expected to close the Florida facilities acquisition?
How many units do FOXO's target Florida assisted living facilities have?
How does FOXO plan to finance the $60 million assisted living facilities acquisition?
What are the key conditions for FOXO's Florida facilities acquisition to close?
