Rennova Health Inc (NASDAQ:RNVA) recently issued an update about its business activities and strategy for the FY2017. The company CEO, Seamus Lagan, pointed out in the update that the 4Q2016 was their best quarter in over a year, with the addition of new clients, as well as several returning clients. He further revealed that they had made significant progress in the substance abuse testing sector and were already observing initial success. RNVA hopes to achieve top-line growth in the near future, with regards to this sector.
Mr. Lagan further clarified that the company was working to diversify its business model, while also securing in-network contracts, with third parties. He claimed that Rennova was moving away from substance abuse testing at a single location, to providing a range of diagnostic services, across the country. In addition to this, the update revealed that the company has engaged with a clinical research organization, with the aim of generating sales from the partnership, during the 1H2017.
The new collaboration is also accompanied by a veteran owned business to become the exclusive provider of diagnostic services for them. Mr. Lagan also took the opportunity to announce that Rennova was expanding its diagnostics menu to include specialized pharmacogenomics. The company believes that the ongoing expansion of their customer base and the addition of new contracts will help RNVA record revenues at similar levels, prior to FY2016.
The update comes soon after RNVA closed an offering of their preferred stock acquired assets from the Scott Community Hospital. It should be noted here that following the offering, Rennova has over 84 million shares of common stock outstanding. Moreover, the Scott Community Hospital, in Oneida, Tennessee, was closed in July 2016. Under the agreement, RNVA would acquire the 4.3 acres facility, 25-beds and the laboratory and emergency equipment. However, a closing price of the agreement is yet to be revealed.
Rennova Health Inc (NASDAQ:RNVA) completed the January 6 trading session with a gain of 3.03% in terms of its share value, to reach a close at $0.0885 per share. The stock had a trade volume of 17.31 million, during the session.
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