Rennova Health (RNVA) to Acquire Remaining Genomas Shares

September 29, 2016 6:32 AM EDT
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Rennova Health, Inc. (Nasdaq: RNVA) (Nasdaq: RNVAZ) announces the signing of a definitive agreement to acquire the remaining ownership (approximately 85%) of Genomas, Inc. for a total of $1.75 million in newly-created Series F convertible preference shares, plus the assumption of approximately $800,000 of existing debt. The conversion price will be the higher of the average of the previous 10 days closing share price of Rennova shares prior to conversion or $1.95. The maximum number of common shares issuable upon conversion of these preference shares is 897,436. Rennova previously announced the acquisition of approximately 15% ownership in July and is pleased to complete the acquisition of 100% of Genomas, Inc. The acquisition brings to Rennova revolutionary PhyzioType Systems for DNA-guided management and prescription of drugs used to treat mental illness, pain, heart disease and diabetes.

Rennova Health previously announced that it had partnered with Genomas on the launch of a series of pharmacogenetics tests that are performed in Genomas’ laboratory via an FDA-approved in vitro diagnostic (IVD) genotyping kit. The laboratory will remain on site at Hartford Hospital and Dr. Gualberto Ruaño will continue to serve as the President and Medical Director of Genomas, which will become a wholly owned subsidiary of Rennova Health, Inc.

“The acquisition of Genomas is a continuation of our goal to assist practitioners by providing better diagnostics to enable them to deliver personalized medicine and improved patient outcomes,” said Seamus Lagan, CEO of Rennova Health, Inc. “This acquisition allows Rennova to deliver diagnostic results that use DNA-guided management and selection of drugs used to treat mental illness, pain, heart disease and diabetes. Genomas PhyzioType Systems provide physicians with an unprecedented capability to reduce risk and select the safest and most effective drug to achieve treatment goals and enhance patient compliance. This will also reduce healthcare costs” Mr. Lagan added.

“We expect the Genomas tests to become an increasingly important part of our overall business in the coming months,” concluded Mr. Lagan.

Closing of the acquisition is subject to, among other things, receipt of regulatory and licensure approvals as well as other customary closing conditions. The acquisition is set to close on October 14, 2016.

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