Agility Health Inc.

Agility Health Inc.

July 27, 2017 16:30 ET

Agility Health Announces Issuance of Securities and Provides Corporate Update

GRAND RAPIDS, MICHIGAN--(Marketwired - July 27, 2017) -


Agility Health, Inc. (TSX VENTURE:AHI) ("Agility Health" or, the "Company"), a leading provider of rehabilitation services, orthotics and software services, today announced that, pursuant to the previously announced loan agreement (the "Loan Agreement") with MIRM-BC Holdings Ltd. (the "Lender") for a loan of up to USD$4,000,000 (the "Loan"), Agility Health will issue to the Lender 409,800 voting common shares (the "Bonus Shares") in connection with today's closing of the third tranche of the Loan in the amount of USD$300,000. Pursuant to the previously announced agreement among the Company, Pierre G. Gagnon, the Company's Interim Chief Executive Officer and Chairman of its Board of Directors, Cross Tang Holdings, Inc., a company controlled by Mr. Gagnon and Kenneth E. Scholten, the Company's President and a director, the Company will issue voting common share purchase warrants ("Warrants"), with 843,750 Warrants issued to Cross Tang Holdings Inc. and 125,000 Warrants to Kenneth Scholten. The Warrants have an exercise price of CAD$0.09, the closing price of the voting common shares on the trading day prior to the closing of the second tranche of the Loan. The issuance of the Bonus Shares and the Warrants is conditional upon the acceptance of the TSX Venture Exchange (the "Exchange"). The Bonus Shares will be subject a hold period expiring four months and one day after the date of issuance.

The Company also announced that, in accordance with the financial advisory agreement between the Company and Maxim Group LLC ("Maxim") announced on January 31, 2017, Agility Health issued a total of 684,210 voting common shares to an affiliate of Maxim in consideration for CAD$65,000 of services rendered by Maxim to the Company during the period from June 1, 2017 to June 30, 2017. The shares were issued at CAD$0.095 per share, the closing price of the voting common shares on the TSX Venture Exchange on June 30, 2017, and are subject to a four-month hold period.

Agility Health also provided a corporate update. "We are encouraged by our start to 2017 and the improvement in revenues and gross margins," said Pierre G. Gagnon, Chairman and Interim CEO. "We are moving forward on a number of hospital and occupational health opportunities throughout the U.S and we are driving growth through disciplined execution across all service lines."

Among the business initiatives during the first half of 2017:

  • A management services agreement with a well-established skilled nursing facility ("SNF") and sub-acute rehabilitation center;
  • An agreement to provide on-site physical rehabilitation services at a large SNF in eastern Michigan;
  • A new clinic opening in Las Cruces, New Mexico, as well as plans for a new clinic opening in El Paso, Texas in the coming months;
  • The closing of two under-performing clinics in Arizona and one in Pennsylvania, which closures the Company believes will positively impact EBITDA; and
  • New agreements with two Fortune 500 companies to provide industrial fitness and rehabilitation services.

"We will continue to invest in evolving and growing our portfolio of clinics, as well as rigorously assessing the performance of our existing clinics," said Mr. Gagnon. "Opportunities for new strategic partnerships engaging the resources of our proprietary AGILE software and the potential of developing bundled payment offerings are also being aggressively pursued. We look forward to continued growth in the months ahead."

About Agility Health

Through its U.S. subsidiary and principal operating entity, Agility Health, LLC, Agility Health operates a multi-state network of outpatient rehabilitation clinics and provides contracted services to hospitals, nursing homes and other institutional clients, providing care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and a variety of other injuries and conditions. In addition, Agility Health provides a number of ancillary services related to physical rehabilitation, including practice management software systems and custom orthotics. As of January 1, 2017, Agility Health operates 84 outpatient or onsite rehabilitation locations in 14 states. Agility Health's contract therapy services business provides rehabilitative services to 36 hospitals and inpatient rehabilitation units and 37 nursing homes, long-term care facilities and other service locations in 11 states.

In Canada, Medic Holdings Corp., Agility's primary Canadian subsidiary, operates twelve (12) foot care clinics and manufactures orthotics and prosthetics.

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Forward-Looking Information

This press release contains forward-looking statements regarding Agility Health and its business. Such statements are based on the current expectations and views of future events of Agility Health's management. In some cases, the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumption and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Agility Health undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future events, or otherwise.

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.

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