Kovo HealthTech lists on TSX Venture Exchange

healthtech

Vancouver-based Kovo HealthTech, a company that creates, acquires, and grows healthtech businesses, is now trading on the TSX Venture Exchange (TSXV).

Kovo filed a non-offering prospectus on May 26, offering no securities as part of its go-public plans. The firm’s common shares began trading June 4 under the symbol ‘KOVO.’ As of June 4, the company has approximately 31 million common shares outstanding, as well as options and warrants to purchase approximately 4 million common shares.

Kovo HealthTech aims to acquire profitable RCM businesses and works to organically grow these businesses.

Kovo specializes in revenue cycle management (RCM), a financial process that uses medical billing software to digitally track patient care episodes from registration and appointment scheduling to the final payment of a balance. The firm, which was founded in 2020, aims to acquire profitable RCM businesses and works to organically grow these businesses.
 

According to the company’s prospectus, Kovo has completed seven successful acquisitions to date, and, in the last fiscal year, tracked approximately 366 percent revenue growth on its RCM business. The firm also processes $71 million USD annually in RCM claims and its clients service 2.6 million patients.

“All around the globe, healthcare is experiencing a digital transformation to help make healthcare billing, record keeping, scheduling and treatment more efficient and empowering for patients and physicians,” said Kovo CEO Greg Noble. “Our team is inspired by the potential to help health care providers to embrace and navigate this important shift in healthcare.”

A non-offering prospectus allows a company to go public without conducting an initial public offering (IPO). It typically means the company does not want or need to raise capital via the prospectus at the current time and is not offering new securities as part of the listing.

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Another Canadian tech company that recently went public on the TSXV through this route is Toronto-based General Assembly Pizza. In March, General Assembly Pizza also went public and did not raise funds through the process, but later raised $13 million in a separate private placement.

Going public has emerged as a major trend in the Canadian tech sector in the last few months.
It follows a year of widespread uncertainty and disruption across a number of industries due to the COVID-19 pandemic. Healthtech, Kovo’s sector, has seen some of the most significant impact from the pandemic, and companies in that sector have jumped on the go-public trend.

One of the most significant healthtech companies to go public this year has been telehealth startup Dialogue, which closed a $100 million IPO in March. Dialogue claimed to see significant growth during the pandemic, claiming its 2020 revenue increased by almost 187 percent compared to 2019.

Image source Pixabay.

Isabelle Kirkwood

Isabelle Kirkwood

Isabelle is a Vancouver-based writer with 5+ years of experience in communications and journalism and a lifelong passion for telling stories. For over two years, she has reported on all sides of the Canadian startup ecosystem, from landmark venture deals to public policy, telling the stories of the founders putting Canadian tech on the map.