Novo Integrated Sciences (NASDAQ:NVOS) surged 70.29% in after-hours trading to $0.77 following HSBC's confirmation of a $78 million Standby Letter of Credit.
What Happened: Novo Integrated Sciences has confirmed receiving written confirmation from HSBC for a Ready, Willing, and Able (RWA) issued for the delivery of a Standby Letter of Credit via Swift MT 760, according to a company press release filed with the SEC.
This move is part of a program aimed at monetizing the SBLC, which is projected to provide the company with gross funding proceeds of approximately $78 million by Jun. 14.
The proceeds are intended to secure the closing of a previously disclosed Purchase and Sale Agreement to acquire the Ophir Collection, granting Novo sole ownership of this collection.
The Ophir Collection refers to a specific collection of gemstones, with 43 gemstones in total, 42 of which are certified by the Gemological Institute of America.
Novo's CEO Robert Mattacchione anticipates generating surplus cash through the Ophir Collection program, supporting non-dilutive financing for the company's growth objectives amid funding challenges faced by micro-cap companies.
He said, "Our objective and focus on providing non-dilutive financing for the Company's growth objectives remains paramount. Specifically, both the Ophir Collection's monetizing potential together with the pending close of the previously disclosed $70 million SPA and Note with the RC Consulting Consortium Group, LLC will create the backstop necessary for the Company to pursue its' short and long-term global objectives."
Novo Integrated Sciences focuses on patient-centric healthcare solutions, integrating medical technology, advanced therapeutics, and rehabilitative science. Their approach aims to decentralize healthcare, enhancing patient-practitioner interactions and potentially reducing on-site medical center visits.
Price Action: NVOS closed at $0.45 on Thursday, showing a decrease of 0.84%. However, after hours, the stock surged to $0.77, marking an increase of 70.29%. Year to date, the stock has experienced a decrease of 41.43%, according to the data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote