NetworkNewsBreaks – ECGI Holdings Inc. (OTC: ECGI) Enters LOI to Acquire Avanta Group
ECGI Holdings (OTC: ECGI) entered into a non-binding letter of intent to acquire Avanta Group, Inc. and its subsidiaries, a proposed transaction intended to build a diversified healthcare platform spanning a developing Medicare Advantage health plan, healthcare management services, health technology, consumer health and supporting real estate infrastructure. Under the letter of intent, ECGI would acquire Avanta for up to 15.6 million newly designated Series V preferred shares, with 20% of the consideration vesting upon execution of a definitive agreement and issued only at closing and the remaining 80% vesting in four equal tranches upon achievement of recurring revenue milestones ranging from $100 million to $400 million. Each vested and issued Series V share would be convertible into 1,000 ECGI common shares.
The proposed acquisition remains subject to due diligence, definitive agreements, required corporate and regulatory approvals and customary closing conditions. Avanta Health Plan, Inc., which is in development, would require applicable approvals and licenses from the California Department of Managed Health Care and the Centers for Medicare & Medicaid Services before operating or enrolling members. Avanta’s proposed platform also includes management-services organization Avanta MSO, LLC, health-technology business Avanta Tech, Inc., consumer-health and wellness channel Avanta Mart, LLC and real-estate entity Avanta Properties City Parkway, LLC.
To view the full press release, visit https://nnw.fm/zITg6
NOTE TO INVESTORS: The latest news and updates relating to ECGI are available in the company’s newsroom at https://nnw.fm/ECGI
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or republished: http://NNW.fm/Disclaimer
ECGI Holdings (OTC: ECGI) entered into a non-binding letter of intent to acquire Avanta Group, Inc. and its subsidiaries, a proposed transaction intended to build a diversified healthcare platform spanning a developing Medicare Advantage health plan, healthcare management services, health technology, consumer health and supporting real estate infrastructure. Under the letter of intent, ECGI would acquire Avanta for up to 15.6 million newly designated Series V preferred shares, with 20% of the consideration vesting upon execution of a definitive agreement and issued only at closing and the remaining 80% vesting in four equal tranches upon achievement of recurring revenue milestones ranging from $100 million to $400 million. Each vested and issued Series V share would be convertible into 1,000 ECGI common shares.
The proposed acquisition remains subject to due diligence, definitive agreements, required corporate and regulatory approvals and customary closing conditions. Avanta Health Plan, Inc., which is in development, would require applicable approvals and licenses from the California Department of Managed Health Care and the Centers for Medicare & Medicaid Services before operating or enrolling members. Avanta’s proposed platform also includes management-services organization Avanta MSO, LLC, health-technology business Avanta Tech, Inc., consumer-health and wellness channel Avanta Mart, LLC and real-estate entity Avanta Properties City Parkway, LLC.
To view the full press release, visit https://nnw.fm/zITg6
NOTE TO INVESTORS: The latest news and updates relating to ECGI are available in the company’s newsroom at https://nnw.fm/ECGI
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or republished: http://NNW.fm/Disclaimer
