Foxo Technologies, Inc., Completes the Acquisition of Revenue Generating Operations From Rennova Health, Inc.
17 Septembre 2024 - 3:00PM
FOXO Technologies Inc. (NYSE
American: FOXO) (the “Company”), today announced it
has completed the acquisition of the second revenue-generating
operation from Rennova Health, Inc. (OTC: RNVA) (“Rennova”).
The Company had previously announced it had
entered into two share exchange agreements with Rennova. The first
agreement was to acquire the equity in Myrtle Recovery Centers,
Inc., Rennova’s behavioral health services subsidiary. Closing of
the Myrtle transaction occurred on June 14, 2024.
The second agreement was to acquire the equity
in Rennova Community Health, Inc. (RCHI), the owner of Scott County
Community Hospital, Inc. (d/b/a Big South Fork Medical Center), a
critical access hospital in Tennessee for $20 million of
Convertible Preferred Stock in FOXO. On September 10, 2024, the
Company entered into an Amended and Restated Stock Exchange
Agreement with Rennova to amend the Stock Exchange Agreement dated
June 10, 2024, to change the consideration to be received by
Rennova in exchange for all of the equity interests of RCHI for
$22,000,000 of intercompany Rennova debt and $100. Under the
Amendment, RCHI issued a senior note to Rennova in the principal
amount of $22,000,000 (subject to adjustments) which will be
secured by all of the assets of RCHI, with the Company and Scott
County Community Hospital, Inc., a Tennessee corporation, providing
a guaranty on the Note pursuant to a Guaranty Agreement dated
September 10, 2024, and with the Company providing a security
interest in the “Collateral,” as defined in the Pledge and Security
Agreement dated September 10, 2024, with Rennova. The Amendment
grants RCHI the right to request the Company to exchange the Note
into $20,000,000 of Series A preferred stock in the Company.
“We are pleased to have completed these
healthcare-related acquisitions from Rennova,” said Mark White,
Interim CEO of FOXO Technologies. “These transactions align with
our core strategy of improving healthcare and well-being while
significantly boosting our revenue. We expect to generate annual
revenues in excess of $20 million from these acquisitions, with the
potential to reach over $50 million in the next 24 months. Our
relationship with Rennova opens additional opportunities to expand
FOXO’s technologies in the marketplace, and we believe this is a
turning point for FOXO and its shareholders.”
Myrtle Recovery Centers, Inc. is a 30-bed
behavioral health facility in East Tennessee. It provides inpatient
services for Detox and Residential Treatment and outpatient
services for MAT and OBOT Programs. The facility was opened in
August 2023 and is in the final stages of securing in-network
contracts with various insurance company payers. We anticipate
growing this business to having profitable annual revenues of
approximately $3-4M and plan to duplicate the model in different
locations. Further information can be found at
www.myrtlerecoverycenters.com
Scott County Community Hospital, Inc. (DBA Big
South Fork Medical) is a critical access designated (CAH) hospital
in East Tennessee. 2023 revenues were approximately $18.5M and
EBITDA for the facility was in excess of $6M. Further information
can be found at www.bsfmedical.com
FOXO Lab’s Inc. (FLI) is a biotechnology
company dedicated to improving human health and longevity through
the development of cutting-edge technology and product solutions
for various industries. FLI’s epigenetic technology applies AI to
DNA methylation to identify molecular biomarkers of human health
and aging. FLI is committed to leveraging the latest
advancements in science and technology to help people live better,
longer lives. For more information about FLI,
visit www.foxotechnologies.com.
About FOXO Technologies
Inc. (“FOXO”)
FOXO owns and operates three
subsidiaries.
Foxo Lab’s, Inc. is a biotechnology company
dedicated to improving human health and longevity through the
development of cutting-edge epigenetic and AI technology and
product solutions for various health and wellness market
sectors.
Myrtle Recovery Centers, Inc., a 30 bed
behavioral health facility in East Tennessee. Myrtle provides
inpatient services for detox and residential treatment and
outpatient services for MAT and OBOT Programs.
Rennova Community Health, Inc., owns and
operates Scott County Community Hospital, Inc. (DBA Big South Fork
Medical), a critical access designated (CAH) hospital in East
Tennessee.
For more information about FOXO,
visit www.foxotechnologies.com.
Forward-Looking Statements
This press release contains certain
forward-looking statements for purposes of the “safe harbor”
provisions under the United States Private Securities Litigation
Reform Act of 1995. Any statements other than statements of
historical fact contained herein, including statements about the
delisting of the Warrants from NYSE American, trading of the
Warrants in the over-the-counter market, the continued listing of
the Company’s Class A common stock on NYSE American, and other
statements identified by words such as “will likely result,” “are
expected to,” “will continue,” “is anticipated,” “estimated,”
“believe,” “intend,” “plan,” “projection,” “outlook” or words of
similar meaning, but the absence of these words does not mean that
a statement is not forward-looking. Any such forward-looking
statements are based upon the current beliefs and expectations of
the Company’s management and are inherently subject to significant
business, economic and competitive uncertainties and contingencies,
many of which are difficult to predict and generally beyond the
Company’s control. Many factors could cause actual future events to
differ materially from the forward-looking statements in this press
release, including but not limited to the possibility that the Plan
will not be accepted by NYSE American, the Company will be unable
to satisfy other continued listing requirements of NYSE American
for its Class A common stock to maintain the listing of the Class A
common stock on NYSE American; the risk of changes in the
competitive and highly regulated industries in
which FOXO operates; variations in operating performance
across competitors or changes in laws and regulations affecting
FOXO’s business; the ability to implement FOXO’s business plans,
forecasts, and other expectations; the ability to obtain financing;
the risk that FOXO has a history of losses and may not
achieve or maintain profitability in the future; potential
inability of FOXO to establish or maintain relationships
required to advance its goals or to achieve its commercialization
and development plans; the enforceability of FOXO’s intellectual
property, including its patents and the potential infringement on
the intellectual property rights of others; and the risk of
downturns and a changing regulatory landscape in the highly
competitive biotechnology industry or in the markets or industries
in which FOXO operates, including the highly regulated
insurance industry. The foregoing list of factors is not
exhaustive. Readers should carefully consider the foregoing factors
and the other risks and uncertainties discussed in FOXO’s most
recent reports on Forms 10-K and 10-Q, particularly the “Risk
Factors” sections of those reports, and in other
documents FOXO has filed, or will file, with
the SEC. These filings identify and address other important
risks and uncertainties that could cause actual events and results
to differ materially from those contained in the forward-looking
statements. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and FOXO assumes no
obligation and do not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Contact:
Crescendo Communications, LLC(212)
671-1020foxo@crescendo-ir.com
FOXO Technologies (AMEX:FOXO)
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