Leveljump Announces Closing of Acquisition of Three Ontario Diagnostic Imaging Clinics

Toronto, Ontario–(Newsfile Corp. – February 8, 2022) – Leveljump Healthcare Corp. (TSXV: JUMP) (OTCQB: JMPHF) (FSE: 75J) (“Leveljump” or the “Company”), a Canadian leader in B2B telehealth solutions, is pleased to announce that, further to its news release of January 11, 2022, it has closed the acquisition of three Ontario-based independent health facilities (“IHFs”).

The purchase was structured as an all cash purchase with an aggregate value of $4.3 million. Funding was provided through a combination of a term loan from the TD bank of $3.2 million (the “TD Loan”) to the Company’s wholly-owned subsidiary, Canadian Teleradiology Services, Inc. (“CTS”), and cash on hand. The TD Loan is amortized over 10 years with an initial 2 year interest rate of 4.02%, with monthly payments of principal and interest and an annual payment of 25% of excess EBITDA towards principal.

The TD Loan is secured through a general security agreement (a “GSA”) over all of the assets of CTS and the newly acquired IHF’s as well as corporate guarantees and GSA’s provided by the IHF’s over their operating assets. Leveljump is also providing a limited recourse guarantee which is only realizable to the extent of any deficiency in the event of a sale of CTS.

As at December 31, 2021, the IHFs reported combined revenue of $1,350,000 with an EBITDA of over $400,000.

The vendor has executed a non-competition agreement for a period of 5 years but will provide transitional support services to Leveljump for a period of 30 days following closing.

Management will be developing and executing its business plan to expand the patient volumes at the IHF clinics. Two of the clinics have been in business for over twenty years and have established relationships within their community. Both of these IHF clinics have shown growth during Covid and with the backlog in the healthcare system, CTS believes it can increase business at these locations. The third IHF clinic has been in business for only a few years and is the only IHF in its community. CTS will implement various marketing efforts to increase revenues at this location.

“As we have stated previously, this transaction represents a significant milestone for the Company as it shows our execution on the next phase of our business plan of growth through acquisitions of businesses with strong revenue and cash flow,” said Mitch Geisler, CEO. “We are very excited to be able to add both the capacity and revenue from these IHFs to our operations.”

About Leveljump Healthcare

Leveljump Healthcare Corp., (TSXV: JUMP) (OTCQB: JMPHF) (FSE: 75J) is a healthcare company with a focus on profitable telehealth solutions as well as primary care services in radiology. The Company’s subsidiary, CTS, provides off-site radiology readings for hospital emergency rooms and is a leader in the teleradiology space in Ontario. As part of our growth strategy, we are acquiring healthcare companies that have strong revenue and cash flow, with room for organic growth.

ON BEHALF OF THE BOARD OF DIRECTORS OF
LEVELJUMP HEALTHCARE CORP.

Mitchell Geisler, Chief Executive Officer
info@leveljumphealthcare.com
(833) 840-2020

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This news release contains “forward-looking information” within the meaning of applicable securities laws relating to the Company’s business plans and the outlook of the Company’s industry. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by applicable securities laws. The Company undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Company, Canadian Teleradiology Services, Inc., their securities, or their respective financial or operating results (as applicable).

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.

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