Rennova Health Inc (RNVA)

[lowtrade]

Holy shit; their buying another hospital. The form D raised $1.24 mil cash !!

On November 20, 2018, Rennova Health, Inc. (the “Company”) entered into an asset purchase agreement (the “Purchase Agreement”) to acquire certain assets related to an acute care hospital located in Jellico, Tennessee and an outpatient clinic located in Williamsburg, Kentucky. The hospital is known as Jellico Community Hospital and the clinic is known as the CarePlus Center. The hospital and the clinic and their associated assets are being acquired from Jellico Community Hospital, Inc. and CarePlus Rural Health Clinic, LLC, respectively. The transaction is expected to close in the first quarter of 2019, subject to customary regulatory approvals and closing conditions. The purchase price is equal to the fair market value of the Owned Personal Property, plus the amount of the Net Working Capital, minus the outstanding amount of the capital lease obligations assumed by the buyer (as such capitalized terms are defined in the Purchase Agreement).

1.11 Owned Personal Property FMV. Within three (3) days of the date of this Agreement, Buyer and Sellers shall engage PYA to determine the current fair market value of the Owned Personal Property. The costs of such appraisal shall be shared equally by Buyer and Sellers. Buyer and Sellers agree that the value of any personal property leased to Sellers under the Hospital Lease or any operating lease shall not be included in the fair market value of the Owned Personal Property. Notwithstanding anything herein to the contrary, if the PYA appraisal determines that the current fair market value of the Owned Personal Property is (i) less than $1,540,000, then for purposes of calculating the Purchase Price pursuant to Section 1.5, the current fair market value of the Owned Personal Property shall be deemed to be $1,540,000, and (ii) greater than $1,940,000, then for purposes of calculating the Purchase Price pursuant to Section 1.5, the current fair market value of the Owned Personal Property shall be deemed to be $1,940,000. If the PYA appraisal referenced above determines that the current fair market value of the Owned Personal Property is less than $1,540,000, then Buyer may terminate this Agreement by written notice to Sellers delivered within ten (10) business days following Buyer’s receipt of the PYA appraisal.