This one other occasion on which we have mentioned Rennova Health Inc (OTCMKTS: RNVA) here on Street Register was several weeks ago, when we were discussing an asset purchase agreement to acquire a new acute medical care facility in Tennessee. The hospital, known as Tennova Healthcare – Jamestown, and its associated assets are being acquired from Community Health Systems, Inc. (NYSE: CYH), and RNVA has gone on record in stating that the expectation is to close the transaction here in the second quarter of 2018.
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.
In a follow-up to that acquisition, Rennova Health Inc (OTCMKTS: RNVA) CEO Seamus Lagan gave an interview this week on Uptick Newswire’s “Stock Day” podcast with Everett Jolly to discuss the progress of taking ownership of the Company’s second rural hospital and what it hopes to achieve this year.
“You and your management team have been working diligently on taking ownership of your second hospital which is in Jamestown, Tennessee,” commented Jolly. “Where are you at in that process?”
“Our target was May 1st but we have pushed that back one month and will take ownership on June 1st,” said Lagan. “The transition of ownership is going exceptionally well but the transition of the many employees in Jamestown onto new benefit scheme etc took a little longer than expected. Our employees are key to the success of the hospital going forward and the extra month creates the opportunity to ensure employees have an enjoyable experience as they join the Rennova team. June 1st is now a fixed date and we are well on schedule to achieve that date.”
“I know management believes in building a company with a strong foundation,” continued Jolly. “What would be the right alignment of the stars to be confident you are on the track the Company is perusing?”
“Completing this acquisition which includes ownership of a nearby physicians practice and properly integrating and managing them to being cash flow positive and profitable is a key first step,” said Lagan. “If we can do that in the next three to six months and get to where we don’t need additional capital to cover overheads we can possibly exit 2018 looking for our next acquisition.” (Source: Uptick Newswire)
Additionally, the company also revealed this week that it has rescinded its request to the shareholders for approval of a reverse split of its common stock.
“Following communication with our shareholders and our intention not to complete a reverse split of our common shares in the immediate future it was decided to remove the request to approve this action at the discretion of the Board as was described in our proxy statement” stated Seamus Lagan, President and Chief Executive Officer of Rennova, adding “Stockholder approval of the proposed increase in authorized common shares is both necessary and critical for the company going forward and it is our hope that our shareholders recognize this necessity and vote “for” and approve the remaining proposals now that the reverse split proposal has been removed. Without approval of the remaining proposals our plans to increase shareholder value going forward will be severely restricted” (Source: Globe Newswire)
We saw an incredible run out of RNVA stock in the month of April, and it appears as if it is rebounding off of the subsequent consolidation, only just having begun to make a reversal. We will of course want to stay in tune with any upcoming changes to the share structure, and we’ll be sure to report on that if and when it occurs. We’ll stay up on any further developments with RNVA and pass them along to you!. Keep it locked on Street Register for updates, and we’ll deliver important developments on RNVA as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
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.