Novo Integrated Sciences, Inc. (NASDAQ: NVOS) announced the issue of an unsecured 15-year $70,000,000 promissory note in favor of SCP Tourbillion Monaco with RC Consulting LLC for a lump sum loan financing of $57,000,000. The note has a non-compounding annual yield of 1.52% and a maturity date of 15 years from the date of issuance. The Note is unsecured, and there is no provision for the Company to convert debt, issue any class of shares, or grant any warrants to the Buyer.
CEO and Chairman of the Board, Robert Mattacchione said, “In today’s environment of tight capital markets and expensive capital raises, this $57,000,000 cash infusion will provide the Company with the foundational capital and repayment terms required to support and accelerate the further implementation and growth of Novo’s three-pillar business model. The non-dilutive and progressive facility will also give the Company the time it needs to effectively market several of its unique assets. As we continue on our route to profitability, structured debt of this type alleviates the burden of capital chasing and allows management to prioritize market expansion. Patient, non-dilutive funding significantly boosts the Company’s potential for meaningful market differentiation.”
Financial Position Update
The Company’s fiscal year 2022 revenue increase of 26% compared to fiscal year 2021 revenue includes an adjustment from gross sales to net sales, reducing Novo’s total reflected fiscal year 2022 3rd quarter outsourced product sales by approximately $9.4m. Because of the inconsistency and intermittent nature of outsourced product sales, as well as the large capital necessary to sustain the sales cycle, the Company chose to make the adjustment.
The Company remains committed to the commercialization of its proprietary product offerings and the expansion and delivery of its essential services and solutions to the rapidly evolving fundamental transformation of how non-catastrophic healthcare is delivered both now and in the future. Specific to increasing the Company’s cash position, management is primarily focused on raising capital through non-dilutive structures and solutions.
