Novo Integrated Sciences’ Board of Directors Conducting Strategic Review to Increase Maximum Amount under Stock Repurchase Program

Rhea-AI Summary

Novo Integrated Sciences (NASDAQ: NVOS) has announced a strategic review by its Board of Directors to potentially increase the maximum amount under its $5 million Stock Repurchase Program.

This follows the disclosure of a $70 million promissory note aimed at funding the Ophir Collection acquisition. The review will assess the utilization of excess funds from monetizing a Standby Letter of Credit.

The timing and amount of any repurchases will depend on various factors including stock price, trading volume, and market conditions. The program is flexible and can be discontinued at any time.

Novo continues to pioneer a holistic, decentralized approach to healthcare, leveraging medical technology, advanced therapeutics, and rehabilitative science.

Positive

• Potential increase in stock repurchase program could elevate stock value.
• Secured $70 million promissory note aimed at Ophir Collection acquisition.
• Continued focus on decentralizing healthcare with innovative technology.

Negative

• Stock repurchase program does not obligate the company to acquire a specific number of shares.
• Repurchase decisions depend on multiple factors, adding uncertainty.
• The program can be discontinued at the company's discretion, causing unpredictability for investors.

Insights

Financial Analyst

When a company announces a strategic review to potentially increase its stock repurchase program, it's often seen as a sign of confidence in its financial stability and future growth prospects. Stock repurchases can be beneficial for shareholders since they reduce the number of outstanding shares, potentially increasing the value of remaining shares. Novo Integrated Sciences has already approved a $5 million stock repurchase program and the company's consideration of increasing this amount suggests they may have additional excess funds from recent financial activities.

However, investors should be cautious about a few points. The increase in the program depends on the successful monetization of a Standby Letter of Credit related to the Ophir Collection acquisition and receiving $57 million in debt funding. These financial maneuvers carry inherent risks, such as the possibility of not securing the expected funds or incurring higher fees and expenses than anticipated. Moreover, the actual repurchase will depend on various factors, including market conditions and the company's capital position, meaning there is no guarantee of its execution.

In the short term, this news might create positive sentiment around the stock, potentially boosting its price. Long term, the effectiveness of this program will depend on Novo's operational performance and how efficiently they utilize the repurchased shares. Investors should closely monitor the company's financial reports and market conditions to gauge the potential impact of this strategic review.

Market Research Analyst

Evaluating the strategic review from a market perspective, the potential increase in the stock repurchase cap could influence investor sentiment and trading behavior. Buybacks often signal to the market that the company believes its shares are undervalued, thereby encouraging investors to view the stock more favorably. This perception can lead to increased demand for the stock, driving up its price and improving liquidity.

However, the market will also evaluate the company’s ability to execute the plan. Given that the decision hinges on forthcoming financial inflows and market conditions, any delays or failures in these areas could negatively affect investor confidence. Furthermore, the macroeconomic environment, including interest rates and overall market volatility, will play a significant role in determining the success of this initiative.

While the announcement could provide a short-term boost in stock price, investors should consider the underlying fundamentals and external factors that could impact the company's ability to follow through with its buyback plans. It's important to stay informed about broader market trends and economic indicators that might influence Novo's financial health and strategic decisions.

BELLEVUE, Wash.--(BUSINESS WIRE)-- As previously reported, the Board of Directors (the “Board”) of Novo Integrated Sciences, Inc. (NASDAQ: NVOS) (the “Company” or “Novo”) approved the repurchase of up to $5 million of the Company’s outstanding common stock from time to time in the open market at prevailing market prices or in privately negotiated transactions (the “Stock Repurchase Program”). The Company today announced that the Board is conducting a strategic review to determine whether it is appropriate to increase the maximum amount that can be repurchased pursuant to the Stock Repurchase Program based on the amount, if any, of excess funds that may be generated from the recently disclosed program to monetize a Standby Letter of Credit intended to complete the Ophir Collection acquisition.

Pending receipt of funds from the unsecured 15-year $70,000,000 promissory note with RC Consulting Consortium Group, LLC in favor of SCP Tourbillion Monaco for a lump sum debt funding of $57,000,000, less fees and expenses, the amount and timing of any shares repurchased under the Stock Repurchase Program will be determined at the discretion of management and will depend on a number of factors, including the market price of the Company's stock, trading volume, general market and economic conditions, the Company's capital position, legal requirements, and other factors. The Stock Repurchase Program does not obligate the Company to acquire any particular number of shares, and the Stock Repurchase Program may be discontinued at any time at the Company's discretion.

About Novo Integrated Sciences, Inc.

Novo Integrated Sciences, Inc. is pioneering a holistic approach to patient-first health and wellness through a multidisciplinary healthcare ecosystem of services and product innovation. Novo offers an essential and differentiated solution to deliver, or intend to deliver, these services and products through the integration of medical technology, advanced therapeutics, and rehabilitative science.

We believe that “decentralizing” healthcare, through the integration of medical technology and interconnectivity, is an essential solution to the rapidly evolving fundamental transformation of how non-catastrophic healthcare is delivered both now and in the future. Specific to non-critical care, ongoing advancements in both medical technology and inter-connectivity are allowing for a shift of the patient/practitioner relationship to the patient’s home and away from on-site visits to primary medical centers with mass-services. This acceleration of “ease-of-access” in the patient/practitioner interaction for non-critical care diagnosis and subsequent treatment minimizes the degradation of non-critical health conditions to critical conditions as well as allowing for more cost-effective healthcare distribution.

The Company’s decentralized healthcare business model is centered on three primary pillars to best support the transformation of non-catastrophic healthcare delivery to patients and consumers:

• First Pillar: Service Networks. Deliver multidisciplinary primary care services through (i) an affiliate network of clinic facilities, (ii) small and micro footprint sized clinic facilities primarily located within the footprint of box-store commercial enterprises, (iii) clinic facilities operated through a franchise relationship with the Company, and (iv) corporate operated clinic facilities.
• Second Pillar: Technology. Develop, deploy, and integrate sophisticated interconnected technology, interfacing the patient to the healthcare practitioner thus expanding the reach and availability of the Company’s services, beyond the traditional clinic location, to geographic areas not readily providing advanced, peripheral based healthcare services, including the patient’s home.
• Third Pillar: Products. Develop and distribute effective, personalized health and wellness product solutions allowing for the customization of patient preventative care remedies and ultimately a healthier population. The Company’s science-first approach to product innovation further emphasizes our mandate to create and provide over-the-counter preventative and maintenance care solutions.

Innovation through science combined with the integration of sophisticated, secure technology assures Novo Integrated Sciences of continued cutting-edge advancement in patient-first platforms.

For more information concerning Novo Integrated Sciences, please visit www.novointegrated.com.

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Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, or the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as "believe," “intend,” "expect," "anticipate," "plan," "potential," "continue," or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks, and uncertainties are discussed in Novo’s filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown uncertainties and other factors which are, in some cases, beyond Novo’s control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Novo’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Novo assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The contents of any website referenced in this press release are not incorporated by reference herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240531113766/en/

Chris David, COO & President

Novo Integrated Sciences, Inc.

chris.david@novointegrated.com

(888) 512-1195

Source: Novo Integrated Sciences, Inc.

FAQ

What is NVOS's Stock Repurchase Program?

NVOS has a program to repurchase up to $5 million of its outstanding common stock.

Why is NVOS reviewing its Stock Repurchase Program?

The review aims to determine if the maximum repurchase amount should be increased based on excess funds from a recent financial transaction.

How will NVOS fund the Ophir Collection acquisition?

Funding will come from a $70 million promissory note, with $57 million available after fees and expenses.

What factors influence NVOS's stock repurchase decisions?

Factors include stock price, trading volume, market conditions, and the company's capital position.

Can NVOS discontinue the Stock Repurchase Program?

Yes, NVOS can discontinue the program at any time at its discretion.