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QUIPT HOME MEDICAL CORP.
Date Filed : Nov 17, 2021
Exhibit 99.1
QUIPT ANNOUNCES STRATEGIC ACQUISITION OF BIOMEDICALSERVICES COMPANY IN THE SOUTHEASTERN UNITED STATES
ACQUISITION PROVIDES QUIPT EXPANSIONARY OPPORTUNITYINTO ADDITIONAL LONG TERM CARE FACILITIES, HOSPITAL SYSTEMS AND OTHER MEDICAL FACILITIES
Cincinnati, Ohio –November 17, 2021 –Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based leaderin the home medical equipment industry, focused on end-to-end respiratory care, is pleased to announce that it has recently acquired aprivately held biomedical services company, with operations in the Southeastern United States, reporting unaudited trailing 12-month annualrevenues of approximately $1.5 million, and $225,000 in net income.
Acquisition Details
The acquisition provides Quipt a synergistic opportunityto expand into a brand-new service line of biomedical repair services for respiratory equipment including preventative maintenance. Quiptwill be able to assist healthcare providers to improve the operational efficiency of their respiratory equipment program. With the nationalfootprint being formed, and robust operating platform in place, Quipt will be well positioned to provide equipment management servicesfor a range of healthcare providers.
The acquisition services a wide range of respiratoryproducts including ventilators, oxygen devices, CPAP/bilevel devices and more. This includes devices from both the acute and non-acutesettings from within the home and hospital environments. The Company’s focus on superior patient care and safety is at the forefrontwith this acquisition and the Company sees an opportunity to further relationships with new and existing long term care facilities, hospitalsystems and other medical facilities across the country.
Quipt will have the opportunity to acquire usedequipment and repair in-house, allowing Quipt the ability to redeploy equipment on its patient population, thus providing the opportunityto lower equipment acquisition costs. Furthermore, Quipt will penetrate a new sales channel by engaging with customers in this new businessunit. Quipt will have the opportunity to service medical equipment outside of its current product mix over time, providing additionalgrowth opportunities. The acquisition serves as an additional organic growth driver as Quipt builds out this new service line.
Under the terms of the definitive purchase agreement,Quipt acquired the biomedical services operation for approximately $700,000 in cash, and the acquisition is expected to increase Quipt’sannual revenues by approximately $1.5 million and net income by approximately of $225,000.
Management Commentary
“We are delighted to enter this segmentof the market, a logical fit for us given the growing number of patients, and referral partners in our network, as well as the burgeoningamount of equipment deliveries we complete every year. Our robust operating engine allows us to synergistically add a new service offeringto the platform, which can be rolled out efficiently throughout the entire organization. The opportunity to include annual preventativemaintenance and repair services for respiratory equipment is timely and we feel we can penetrate new and existing long term care facilities,hospital systems and other medical facilities with this additional service,” said Greg Crawford, Chairman and CEO of Quipt. “Wefeel this segment can offer additional organic and inorganic growth opportunities and will be very nimble as we work to grow this segmentof the business. The end of 2021 is providing Quipt significant momentum across the board and our current pipeline consists of companiesreflective of all three tiers of our previously disclosed acquisition strategy and we are very optimistic regarding our opportunity tocontinue closing targets that fit the strategic vision we have.”
ABOUT QUIPT HOME MEDICAL CORP.
The Company provides in-home monitoring and diseasemanagement services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continueto expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease,sleep disorders, reduced mobility and other chronic health conditions. The primary business objective of the Company is to create shareholdervalue by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company’sorganic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating thepatient’s services, and making life easier for the patient.
Reader Advisories
Readers are cautioned that the financial informationregarding the target disclosed herein is unaudited and derived as a result of the Company’s due diligence, including a review ofthe target’s bank statements and tax returns.
There can be no assurance that any of the potentialacquisitions in the Company’s pipeline or in negotiations will be completed as proposed or at all and no definitive agreements havebeen executed. Completion of any transaction will be subject to applicable director, shareholder and regulatory approvals.
Unless otherwise specified, all dollar amountsin this press release are expressed in U.S. dollars.
Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracyof this release.
Forward-Looking Statements
Certain statements contained in this pressrelease constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. Thewords "may", "would", "could", "should", "potential", "will", "seek","intend", "plan", "anticipate", "believe", "estimate", "expect" and similarexpressions as they relate to the Company, including: post integration financial results of the acquisition target; the Company’sacquisition approach; the impact and results of the acquisition on the Company; the Company’s view on future growth, including organicgrowth; the Company entering new lines of business; and the Company being very optimistic regarding its opportunity to continue closingtargets that fit its strategic vision; are intended to identify forward-looking information. All statements other than statements of historicalfact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events,and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including: the acquisitiontargets achieving results at least as good as historical performances; and the Company successfully identified, negotiating and completingadditional acquisitions, including accretive acquisitions. Many factors could cause the actual results, performance or achievements thatmay be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risksor uncertainties materialize. Examples of such risk factors include, without limitation: credit; market (including equity, commodity,foreign exchange and interest rate); liquidity; operational (including technology and infrastructure); reputational; insurance; strategic;regulatory; legal; environmental; capital adequacy; the general business and economic conditions in the regions in which the Company operates;the ability of the Company to execute on key priorities, including the successful completion of acquisitions, business retention, andstrategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implementbusiness strategies and pursue business opportunities; low profit market segments; disruptions in or attacks (including cyber-attacks)on the Company's information technology, internet, network access or other voice or data communications systems or services; the evolutionof various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with theirobligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; declineof reimbursement rates; dependence on few payors; possible new drug discoveries; a novel business model; dependence on key suppliers;granting of permits and licenses in a highly regulated business; the overall difficult litigation environment, including in the U.S.;increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity andcompetition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accountingstandards, policies, and methods used by the Company; the occurrence of natural and unnatural catastrophic events and claims resultingfrom such events; and risks related to COVID-19 including various recommendations, orders and measures of governmental authorities totry to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations,shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and adeterioration of general economic conditions including a possible national or global recession; as well as those risk factors discussedor referred to in the Company’s disclosure documents filed with United States Securities and Exchange Commission and available atwww.sec.gov, and with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should anyfactor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, theactual results or events may differ materially from the results or events predicted. Any such forward-looking information is expresslyqualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completenessof such forward-looking information. The forward-looking information included in this press release is made as of the date of this pressrelease and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as requiredby applicable law.
For further information please visit our websiteat www.Quipthomemedical.com, or contact:
Cole Stevens
VP of Corporate Development
859-300-6455
cole.stevens@myquipt.com
Gregory Crawford
Chief Executive Officer
Quipt Home Medical Corp.
859-300-6455
investorinfo@myquipt.com