FOXO Technologies has announced share exchange agreements to acquire healthcare operations from Rennova Health, including a critical access hospital and a behavioral health services subsidiary in the US.
The move is aimed at integrating advanced epigenetic technology into community health and addiction recovery services.
In the first share exchange agreement, FOXO will acquire equity in Myrtle Recovery Centers, Rennova's behavioral health services subsidiary, for $500,000 in common stock, subject to adjustments.
Myrtle Recovery Centers is a 30-bed facility in East Tennessee, offering inpatient and outpatient services, with plans for expansion.
The second agreement involves the acquisition of equity in Rennova Community Health, which manages Scott County Community Hospital, also known as Big South Fork Medical Center.
This transaction is valued at $20m in convertible preferred stock to be designated. Scott County Community Hospital is a critical access hospital located in East Tennessee.
Together, Scott County Community Hospital and Myrtle Recovery Centers reported unaudited net revenue of approximately $18.7m and net income of around $5.2m for the 12 months ending 31 December 2023.
Rennova Health CEO Seamus Lagan said: “The two agreements have the potential to drive significant value and synergies for both our respective companies. In particular, we believe this transaction will enable us to rapidly expand our core business.
“In addition, by combining our established healthcare operations with FOXO’s expertise in AI and epigenetics, we foresee a powerful synergy that will enhance our service offerings and broaden our impact in the healthcare sector.”
The acquisition is expected to drive growth for FOXO Technologies and enhance patient outcomes by utilising its epigenetic technology in these settings.
The completion of these transactions is contingent upon several conditions, including shareholder approval for Rennova Community Health acquisition.
This strategic move is anticipated to expand FOXO Technologies' market reach and reinforce its position in the healthcare sector.
