Recent Business Development Contract Growth and Director Change
TORONTO, April 7th, 2017 /CNW/ - Syncordia Technologies and Healthcare Solutions, Corp. (TSXV: SYN) ("Syncordia") is pleased to provide an update on recent business development contracts, director changes to accompany upcoming divestitures and an introduction to Syncordia's new Chief Financial Officer.
We would like to announce the signing of a new book of business in our behavioral health business segment, which we anticipate will contribute approximately $900,000 in EBITDA on an annualized basis. We will pay $250,000 at closing for this book of business upon successful migration of at least 50% of the customer contracts with a balloon payment paid on the 16th month anniversary from closing of up to $750,000 subject to thresholds of revenue generated during the 12 months immediately following the date of close ("Earn Out"). A Letter of Intent was signed on April 4th, 2017. A further press release will be issued on closing anticipated to be calendar Q2, 2017.
In preparation for upcoming portfolio asset divestitures, Syncordia would like to announce a change of directorship to align the background of the directors with Syncordia's future path of lower mid-market acquisitions with excellent upside potential. As part of the next evolution of Syncordia we are in discussions with new directors who would be very much aligned with our future growth plans. Our acquisition criteria is to buy assets at less than 5x trailing-twelve-months EBITDA, assets that are not meeting their full earnings and free cash flow potential that we think we can significantly improve in the first 12 months, can use software as an enabler to drive margins and improve performance and are at an inflection point whereby the increase in earnings and size of the business with the addition of software will command a larger multiple on exit. If available we prefer a partnership approach to shareholder creation utilizing the seller and their team for continuity, their respective skills set and industry connections and expertise. Therefore, Michael DiMino, James Eaton and Shaun Francis will depart and make room for Andrew Blott of Quantum Capital http://www.quantumcapital.com and two other directors who we are in active discussions with and will announce shortly. (all subject to Toronto Stock Exchange approval).
Additionally, Mr. Stephen Gledhill (CPA, CMA), pending exchange approval, will assume the role of Chief Financial Officer for Syncordia. Mr. Gledhill is a founding member and Managing Director and CFO of RG Mining Investments Inc. and RG Management Services Inc., both of which are accounting, administrative and corporate secretarial services companies. In 1992, he formed Keshill Consulting Associates Inc., a boutique management consulting practice. Mr. Gledhill has over 25 years of financial-control experience and acts as CFO and Corporate Secretary for multiple publically-traded companies, several of which he was instrumental in scaling-up and taking public. He currently serves as the CFO of Toachi Mining Inc. (TSXV:TIM), Caracara Silver Inc. (TSXV-Z:CSV); BlueOcean NutraSciences Inc. (TSXV:BOC); and Rosita Mining Corporation (TSXV:RST).
About Syncordia Technologies and Healthcare Solutions, Corp.
We are a technology enhanced revenue cycle management ("RCM") company focused on underserved niche segments of the healthcare industry. We are focused on using our proprietary software suite as an accelerator for growth. We are building a diversified software and services business by consolidating healthcare billing providers. Our growth strategy is to acquire revenue cycle management/medical billing businesses with and without software and improve their profitability by increasing revenues, operating efficiencies and margins. Syncordia will leveraging proprietary software to manage scale, drive better customer experiences and enhance margins while driving a competitive sustainable profile.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Certain statements herein may be "forward looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Syncordia or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and we assume no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.
SOURCE Syncordia Technologies and Healthcare Solutions, Corp.
For further information: Michael Franks, Chief Executive Officer, (647) 949-2663, [email protected]
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