Rennova Health Inc (RNVA)

[MJAM2020]

Biotech Company FOXO Technologies Buys Addiction Provider Myrtle Recovery Centers
By Laura Lovett| June 26, 2024
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Biotech company FOXO Technologies (NYSE American: FOXO) has acquired substance use disorder provider Myrtle Recovery Centers.

FOXO is an unusual acquirer for an addiction provider. Typically, M&A deals in this space are conducted between private equity investors, larger providers, and even venture capital firms.

Myrtle Recovery Centers is a subsidiary of Rennova Health, a health care company. As part of the deal, the biotech company will buy Myrtle Recovery Centers for $500,000 of common stock in FOXO.


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Myrtle Recovery Centers operates a 30-bed addiction recovery facility in Oneida, Tennessee. The provider offers medication-assisted treatment, detox services, and inpatient residential treatment. It plans to duplicate its model in other locations.

In addition to Myrtle Recovery, FOXO will purchase Rennova Community Health for $20 million of convertible preferred stock.

“This acquisition represents a transformative step for FOXO Technologies,” Mark White, Interim CEO of FOXO Technologies, said in a statement. “Myrtle Recovery Centers and Scott County Community Hospital are established businesses with opportunities for continued growth. Moreover, these transactions bring meaningful cash flow to FOXO. Our plan is to considerably grow these revenues over the next couple of years, including from the rights we secured to expand these businesses into another East Tennessee property owned by Rennova.”

FOXO produces technology products for multiple industries including life insurance. It has epigenetic technology to help pinpoint biomarkers for human health and aging.

The new acquisitions will also provide an opportunity for FOXO to test drive its technologies in a real-world setting.

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“Rennova’s history in diagnostic testing, coupled with its expertise in healthcare IT and software, creates additional opportunities for FOXO to expand and deliver our current technologies to the marketplace. We believe these transactions represent a key inflection point for FOXO by combining our innovative epigenetic and AI-based epigenetic solutions, such as the VITHAR AI Health Coach, with their robust healthcare services to bring an unprecedented level of care to patients. We look forward to providing further updates as we advance these important transactions.”

https://bhbusiness.com/2024/06/26/biotech-company-foxo-technologies-buys-addiction-provider-myrtle-recovery-centers/

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