Novo Integrated Sciences Receives Confirmation of Ready, Willing and Able (RWA) Issued by HSBC for SBLC Leasing and Monetizing Program

Rhea-AI Summary

Novo Integrated Sciences (NASDAQ: NVOS) announced the receipt of a Ready, Willing and Able (RWA) confirmation from HSBC for a Standby Letter of Credit (SBLC) worth $78 million. The proceeds from this SBLC, expected by June 14, 2024, will be used to acquire sole ownership of the Ophir Collection, enhancing the company's financial standing. This aligns with Novo's strategy for non-dilutive financing, essential for its growth objectives. The CEO emphasized that this program will provide substantial cash flow, supporting both short-term and long-term goals despite challenges in micro-cap funding.

Positive

• Novo Integrated Sciences received a confirmation of readiness from HSBC for a $78 million Standby Letter of Credit (SBLC).
• The projected funds will be received by June 14, 2024.
• The funds will secure the acquisition of the Ophir Collection, resulting in sole ownership by Novo.
• This program aligns with Novo's strategy for non-dilutive financing, critical for its growth objectives.
• The acquisition is expected to generate significant surplus cash flow for the company.
• Novo is also closing a $70 million SPA and Note with the RC Consulting Consortium Group.

Negative

• The actual receipt of the $78 million is projected and not guaranteed, introducing financial uncertainty.
• There is an inherent risk involved in the monetization of the Ophir Collection.
• Micro-cap companies like Novo face significant challenges in securing funding, adding to the financial risks.
• The entire plan hinges on the successful closing of the $70 million SPA and Note with RC Consulting Consortium Group, which is pending.

Financial Analyst

The confirmation of a Ready, Willing and Able (RWA) letter from HSBC for a Standby Letter of Credit (SBLC) is significant for Novo Integrated Sciences as it indicates a secured funding of approximately 78 million. This funding is earmarked to secure the closing of a previously disclosed Purchase and Sale Agreement (SPA). Importantly, this move aligns with the company's strategy of non-dilutive financing, thereby avoiding the potential negative impact on shareholder value that could come with share dilution. Additionally, the CEO's statement notes that this funding, combined with the pending close of a 70 million SPA, provides a financial backstop for the company to pursue its global objectives. For retail investors, this is a positive indicator as it implies that the company is taking steps to secure its financial stability and growth without diluting shareholder equity.

Market Research Analyst

The monetization of the Ophir Collection and the company's focus on decentralizing healthcare through technology and service networks showcases its commitment to innovative solutions in the healthcare sector. By leveraging advanced medical technology and interconnectivity, Novo Integrated Sciences aims to provide cost-effective, patient-first healthcare, which aligns well with the current trends in the industry. This move is particularly relevant in the context of the ongoing transformation in healthcare delivery, emphasizing ease-of-access and personalized care. For stakeholders, this strategy could translate into increased market penetration and a stronger competitive position in the healthcare sector in the long term.

BELLEVUE, Wash.--(BUSINESS WIRE)-- Novo Integrated Sciences, Inc. (NASDAQ: NVOS) (the “Company” or “Novo”) announced today that as part of a program to monetize a Standby Letter of Credit (“SBLC”), the Company has received written confirmation that a Ready, Willing and Able (“RWA”) has been issued by HSBC, for delivery by Swift MT 760, of a SBLC. The Company previously entered into an application for the monetizing program whereby the Company is projected to receive gross funding proceeds of approximately $78 million, under the SBLC instrument, on or before June 14, 2024.

The intended use of the proceeds will secure the closing of the previously disclosed Purchase and Sale Agreement to acquire the Ophir Collection resulting in the sole unfettered ownership of the Ophir Collection by the Company.

Robert Mattacchione, the Company’s CEO and Board Chairman, stated, "The completion of this program will allow the Company to secure and inevitably generate significant surplus cash through the monetization of the Ophir Collection. Our objective and focus on providing non-dilutive financing for the Company’s growth objectives remains paramount. Specifically, both the Ophir Collection’s monetizing potential together with the pending close of the previously disclosed $70 million SPA and Note with the RC Consulting Consortium Group, LLC will create the backstop necessary for the Company to pursue its’ short and long-term global objectives. In times where micro-cap companies face unique and significant challenges addressing funding requirements, we remain steadfast in our approach to non-dilutive solutions."

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/20240530842835/en/

Chris David, COO

Novo Integrated Sciences, Inc.

chris.david@novointegrated.com

(888) 512-1195

Source: Novo Integrated Sciences, Inc.

FAQ

What is the latest announcement from Novo Integrated Sciences regarding SBLC?

Novo Integrated Sciences announced the receipt of a Ready, Willing and Able (RWA) confirmation from HSBC for a $78 million Standby Letter of Credit (SBLC).

When is Novo Integrated Sciences expected to receive the SBLC funds?

The company is expected to receive the SBLC funds by June 14, 2024.

What will Novo Integrated Sciences do with the SBLC funds?

Novo Integrated Sciences will use the SBLC funds to acquire sole ownership of the Ophir Collection.

How does the SBLC program align with Novo Integrated Sciences' financing strategy?

The SBLC program is part of Novo's strategy for non-dilutive financing, which is important for its growth objectives.

What is the financial impact of acquiring the Ophir Collection for Novo Integrated Sciences?

The acquisition is expected to generate significant surplus cash flow for Novo Integrated Sciences.

What other financial transactions is Novo Integrated Sciences involved in?

Novo Integrated Sciences is also closing a $70 million SPA and Note with the RC Consulting Consortium Group.