FOXO Technologies Inc. (NYSE American: FOXO), a company specializing in commercial physical and biological research, has completed the acquisition of Rennova Community Health (NYSE:CYH), Inc. (RCHI), previously announced on June 10, 2024.
The transaction, which was finalized on Monday, involved an amendment to the original stock exchange agreement, resulting in a cash consideration of $100 and the issuance of a $22 million senior note to Rennova Health, Inc. (RHI), the seller.
The note, maturing on September 10, 2026, carries an initial interest rate of 8% per annum, increasing to 12% after six months, and 20% upon default post-maturity. It is secured by the assets of RCHI and its subsidiary, Scott County Community Hospital, Inc. (SCCH), and is guaranteed by FOXO Technologies Inc. under the Guaranty Agreement and Security Agreement.
This strategic move led to the appointment of Seamus Lagan and Trevor Langley to the FOXO Technologies board of directors, effective Monday. Lagan, with extensive experience as CEO and President of RHI, and Langley, a seasoned director at RHI and managing partner of Avanti Capital Group LLC, bring valuable expertise to FOXO's board.
The acquisition aligns with FOXO Technologies' growth strategy and expands its presence in the healthcare sector. The company's board approved the closing of the amended stock exchange agreement, which is expected to positively impact FOXO's operational capabilities.
This report is based on a press release statement and the financial details have been sourced from the 8-K filing with the Securities and Exchange Commission. The company's shares are listed on the NYSE American stock exchange under the ticker FOXO.
In other recent news, FOXO Technologies has made significant strides in its financial and operational activities. The company has amended an existing equity financing agreement, increasing the commitment from $2 million to $5 million. This allows ClearThink Capital Partners, LLC to purchase additional Class A Common Stock from FOXO Technologies. Concurrently, FOXO Technologies and ClearThink have terminated a second Strata Purchase Agreement, concluding all outstanding obligations under this agreement.
FOXO Technologies has also regained compliance with the New York Stock Exchange American continued listing standards, after resolving outstanding listing fees. This development eliminates the risk of delisting that the company previously faced.
The company has been proactive in making strategic agreements and adjusting its executive compensation structure. It has signed a Corporate Development Advisory Agreement with C L Talent Inc., and engaged J.H. Darbie & Co., Inc. as a nonexclusive financial adviser. FOXO Technologies has also revised its executive compensation, replacing an interim employment agreement with a new Services Agreement with Mark White.
Furthermore, FOXO Technologies announced its acquisition of Myrtle Recovery Centers, Inc., a behavioral health facility, and is in the process of acquiring rural hospital operations from Rennova Health, Inc. in Tennessee. These acquisitions are expected to generate profitable annual revenues and contribute to the company's growth.
InvestingPro Insights
In light of FOXO Technologies Inc.'s recent acquisition of Rennova Community Health, Inc., a look at the company's financial health and stock performance metrics can offer investors additional context. According to InvestingPro data, FOXO Technologies has a market capitalization of $2.39 million and a revenue of $0.15 million for the last twelve months as of Q2 2024. Despite an impressive one-month price total return of 31.64%, the company has experienced a significant revenue decline of 66.08% during the same period.
InvestingPro Tips suggest that FOXO's stock price movements are quite volatile and the company has not been profitable over the last twelve months. Furthermore, the price has fallen considerably over the last year, with a one-year price total return of -86.07%. These factors are crucial for investors to consider when evaluating the potential long-term benefits of the acquisition.
For those seeking a deeper analysis, additional InvestingPro Tips for FOXO Technologies are available, providing further insights into the company's financial performance and stock valuation.
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