September 09, 2020 – Rennova Health, Inc. (OTC: RNVA) (OTC: RNVAW), today announced that it has completed an agreement to sell its last clinical laboratory, EPIC Reference Labs, Inc. in West Palm Beach Florida to TPT Global Tech, Inc. (OTC: TPTW) Rennova will continue to operate the lab on behalf of TPT until the change of ownership process is complete. Rennova will receive $750,000 for the lab and its license. The purchase price does not include any equipment which may be purchased separately by TPT. Equipment not purchased may be utilized by Rennova’s hospital based labs.
TPT intends to use the EPIC Reference Lab as a base from which to launch its mobile QuikLab to deliver rapid Covid-19 point of care testing. Rennova’s software division is currently working with TPT to provide the LIS (Lab information system), equipment integrations and other technology and software to these mobile labs.
“This sales concludes the transition of our business from a diagnostics company to an owner and operator of rural hospitals with their own clinical labs” said Seamus Lagan, CEO of Rennova Health. “This sale and the ongoing collaboration with TPT Global Tech to provide IT and software services for their QuikLab business strategy creates value and opportunity for both parties”
Rennova has previously disclosed on June 12, 2020. its agreement with TPT Global Tech, Inc. that will lead to Rennova’s software and genetic diagnostics interpretation divisions becoming a public company in which Rennova shareholders will receive shares. This transaction is nearing completion. Currently, TPT’s newly formed subsidiary, InnovaQor, Inc. has completed a merger agreement with a public company. That public company has initiated the steps to complete a name change to InnovaQor, Inc. and receive a new trading symbol. On completion of this process we expect to complete the merger of our software and genetic testing interpretation divisions, Health Technology Solutions, Inc. (HTS) and Advanced Molecular Services Group, Inc., (AMSG) into InnovaQor, Inc.
Completion of the transaction remains subject to a number of approvals and consents which need to be secured to complete the transaction. Subject to the relevant SEC approvals it is intended that Rennova Health will receive approximately $22 million of preferred shares, $5 million of which will be converted to common shares and distributed to Rennova Shareholders with the remaining approximately $17 million of preferred shares held by Rennova as an investment in InnovaQor and convertible to common shares on achievement of certain milestones going forward. Rennova will be responsible to appoint management to the project. While we are confident on a successful completion of this transaction there can be no assurance that the transaction as described will close successfully or that terms including numbers or values for consideration shares will not change significantly before closing
InnovaQor, Inc. will further develop and sell the IT and technology assets already developed by Rennova and TPT, with an initial focus on an expanded telehealth like platform to provide a complete solution for patients and hospitals in rural communities.
About Rennova Health, Inc.
Rennova operates three rural hospitals and a physician’s office in Tennessee and a rural clinic in Kentucky, and provides industry-leading diagnostics and supportive software solutions to healthcare providers. Through an ever-expanding group of strategic brands that work in unison to empower customers, we are creating the next generation of healthcare. For more information, please visit www.rennovahealth.com
