Rennova Health Inc (OTCMKTS: RNVA) provides diagnostics and supportive software solutions to healthcare providers through an ever-expanding group of strategic brands, and the company opened its first rural hospital in Oneida, Tennessee in August of 2017.
We’ve taken notice of RNVA as the stock has been gaining steam in both price action and volatility as well as volume over the past few sessions, after a difficult start to 2018.
That dip in share price persisted through even good news roughly a month ago, as Rennova Health Inc (OTCMKTS: RNVA) entered into an asset purchase agreement to acquire a new facility; an acute care hospital in Jamestown, Tennessee. The hospital known as Tennova Healthcare – Jamestown, and its associated assets are being acquired from Community Health Systems, Inc. (NYSE: CYH). The company expects the transaction to close in the second quarter of 2018, subject to the customary regulatory approvals and closing conditions.
Tennova Healthcare – Jamestown is a fully operational 85-bed facility including a 24/7 emergency department, radiology department, surgical center, and a wound care & hyperbaric center. The purchase includes a 90,000 sq. ft. hospital building on approximately 8 acres.
“This acquisition further demonstrates our commitment to expanding Rennova’s rural hospital model to provide necessary services to patients while securing more predictable recurring revenues,” said Seamus Lagan, CEO of Rennova. “This hospital is approximately 38 miles (less than a one-hour drive) from our current hospital in Oneida and will benefit by receiving patients from Oneida that require operations and treatment not provided there. The synergy of management and services in a close geographic location creates numerous efficiencies for Rennova and will allow us to support a greater number of health care providers and residents in the local area.” (Source: Marketwired)
The company’s purchase of two geographically synergetic hospitals in rural Tennessee has opened the door for predictable revenue and growth moving forward. Rennova Health expects the implementation of this model will prove positive for the company and its shareholders and expects significant improvements in revenue and shareholders’ equity throughout 2018.
In other news, the company this week has announced that it has entered into an additional issuance agreement with certain existing institutional investors of the Company. Pursuant to the Agreement, the Company has agreed to issue a further $2,480,000 aggregate principal amount of the September 1, 2017 Senior Secured Original Issue Discount Convertible Debentures due September 19, 2019. Gross proceeds from the Agreement are expected to be $2,000,000.
Additionally, CEO Seamus Lagan was recently featured on Uptick Newswire’s “Stock Day” podcast with Everett Jolly, where he offered comment on the recent purchases and more:
“Our hospital in Oneida is benefiting from increasing numbers of patients and billing each month since opening,” said Lagan. “The purchase of a second much larger hospital within one hour’s drive from Oneida will create opportunity for numerous efficiencies between the two facilities and allow us to further treat a large number of the patients that Oneida sends to other hospitals each month for operations and other treatments.”
We’ll continue to track RNVA’s progress with its rural healthcare facilities and other business activities, but for now our primary interest is tracking its behavior on the chart moving forward, as the stock is long overdue for a reversal of fortune. We’ll stay up on any further developments with RNVA and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free smallcap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in RNVA stock, short or long.