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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest reported): October 6, 2023
Novo
Integrated Sciences, Inc.
(Exact
name of registrant as specified in its charter)
Nevada |
|
001-40089 |
|
59-3691650 |
(State
or other jurisdiction |
|
(Commission |
|
(IRS
Employer |
of
Incorporation) |
|
File
Number) |
|
Identification
Number) |
11120
NE 2nd Street, Suite 100, Bellevue, WA 98004
(Address
of principal executive offices)
(206)
617-9797
(Registrant’s
telephone number, including area code)
N/A
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instruction A.2.)
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CF$ 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
Title
of Each Class |
|
Trading
Symbol(s) |
|
Name
of Each Exchange on which Registered |
Common
Stock, $0.001 par value |
|
NVOS |
|
The
Nasdaq Stock Market LLC |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item
7.01. Regulation FD Disclosure.
On
October 6, 2023, Novo Integrated Sciences, Inc. (the “Company”) issued a press release providing an update with respect to
the following previously disclosed pending transactions: (i) the Blacksheep Trust One Billion Dollar Master Collateral Transfer Agreement,
(ii) the Letter of Funding Commitment (the “Letter of Funding Commitment”) for a direct investment in the Company of $40,000,000
from Sheikh Khaled bin Mohammad bin Fahad Al Thanayan to develop eldercare facilities in Canada, and (iii) the unsecured 15-year $70,000,000
promissory note with RC Consulting LLC in favor of SCP Tourbillion Monaco for a lump sum debt funding of $57,000,000. A copy of the press
release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.
A
copy of the Letter of Funding Commitment, dated May 5, 2023, is also attached hereto as Exhibit 99.2.
The
information included in this Item 7.01, including Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities
of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended,
or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The information set forth under this
Item 7.01 shall not be deemed an admission as to the materiality of any information in this Current Report on Form 8-K that is required
to be disclosed solely to satisfy the requirements of Regulation FD.
Item
9.01. Financial Statements and Exhibits.
(d)
Exhibits.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
|
Novo
Integrated Sciences, Inc. |
|
|
|
Dated:
October 6, 2023 |
By:
|
/s/
Robert Mattacchione |
|
|
Robert
Mattacchione |
|
|
Chief
Executive Officer |
Exhibit
99.1
Novo
Integrated Sciences Provides Update on Certain Current Events
BELLEVUE,
Wash., October 6, 2023 - Novo Integrated Sciences, Inc. (NASDAQ: NVOS) (the “Company” or “Novo”) today provides
an update with respect to the following previously disclosed pending transactions: (i) the Blacksheep Trust One Billion Dollar Master
Collateral Transfer Agreement (the “Collateral Transfer Facility”), (ii) the Letter of Funding Commitment for a direct investment
in the Company of $40,000,000 from Sheikh Khaled bin Mohammad bin Fahad Al Thanayan (“Sheikh Khaled”) to develop eldercare
facilities in Canada, and (iii) the unsecured 15-year $70,000,000 promissory note with RC Consulting LLC in favor of SCP Tourbillion
Monaco for a lump sum debt funding of $57,000,000:
Collateral
Transfer Facility. It is important to note that a facility of this nature is not a novelty nor unique to Novo, but rather an effective
financing tool in European and Asian marketplaces.
What
is the Collateral? The Company’s preliminary due diligence establishing the existence of the collateral in a form and amount
sufficient to fulfill the contemplated transfer reflected a GOLD-BACKED GUARANTEE (the “Collateral”).
Validation
and Authentication. The pending Collateral validation and authentication will be conducted by an independent PCAOB auditor as
the Collateral to be transferred will be reflected on the Company’s balance sheet. Upon verification and authentication of the
Collateral, the parties will enter into a Collateral Transfer Agreement and other ancillary agreements related to the book transfer and
segregation of collateral.
Monetization.
Upon completion of the Collateral transfer, the Company expects to leverage the Collateral in order to obtain a significant line
of credit. The line of credit would be secured solely by the Collateral, leaving the balance of the Company’s assets free and clear.
Blacksheep
Trust Compensation. Upon successful monetization, the Company will advance the prescribed fee of 15% of the monetization amount
to Blacksheep Trust. This is the first time Blacksheep Trust will be entitled to ANY compensation. Upon further draw-down of funds
from the Collateral backed line of credit for deal flow, Blacksheep Trust will be entitled to an annual distribution of 10% of net profits
as identified by an independent auditor based on the Company’s business activity resulting from the direct investment of any funds
derived from monetization.
Risk
to Company up to Monetization. Prior to monetization, there is no risk to the Company as a result of the Collateral Transfer
Facility.
What
is Blacksheep Trust? Blacksheep Trust is a New York-based private express trust settled for the purposes of Benevolent Services
with (i) a 33% allocation to charitable services, and (ii) 67% allocation to social economic development.
Who
is Blacksheep Trust?
| ● | Administered
by multiple Trustees. |
| ● | Mr.
Baron, Trustee. Prior to assuming his role as a trustee of Blacksheep Trust, Mr. Baron was
involved in an unfortunate circumstance that cost him his reputation and prompted his shift
of focus to charitable services and social economic development. |
| | |
| ● | Mr.
Sanjeev Verma, Executive Trustee. Mr. Verma is a distinguished former international banker
with 30 years of banking and financial services expertise, having previously worked with
Goldman Sachs, Deutsche Bank, Standard Chartered Bank, and Charles Schwab. Mr. Verma has
extensive experience working with global regulators and implementing robust risk management
and governance structures. We anticipate that Mr. Verma will be Blacksheep Trust’s
nominee to serve on Novo’s Board of Directors. In this role, we expect that Mr. Verma
will bring his wealth of expertise and distinguished reputation, and will play a pivotal
role on Novo’s Board, pending the successful transfer of collateral through the Collateral
Transfer Facility. |
Expressing
his anticipation for this project, Mr. Verma stated, “As an Executive Trustee of Blacksheep Trust, I look forward to contributing
to Novo’s success. Our mission is to uphold the highest standards, and I am eager to bring my expertise to Novo’s Board upon
the successful completion of the collateral transfer.”
$40,000,000
Letter of Funding Commitment from Sheikh Khaled. As previously announced, the Company has a funding commitment for a direct investment
of $40,000,000 from Sheikh Khaled through Gulf International Minerals and Energy Group (GIMEG). The funding is expected to result in
project-specific joint ventures for development of elder care and senior living community facilities in Canada. The Company is actively
working to identify and secure the initial eldercare facility for this project.
Unsecured
15-year $70,000,000 Promissory Note. On April 27, 2023, the Company disclosed the issuance of an unsecured 15-year $70,000,000 promissory
note, for a lump sum debt funding of $57,000,000, to RC Consulting LLC in favor of SCP Tourbillion Monaco. As a result of the Company’s
then non-compliance with Nasdaq’s continued listing requirements, the Company was unable to receive any funds available to it through
the coupon. On May 31, 2023, the Company regained Nasdaq compliance, resulting in the commencement of underwriting and lender compliance
review.
Regarding
the current funding timeline, Roland Coston, President and CEO of RC Consulting LLC, commented, “RC Consulting Group L.L.C’s
duties as a fiduciary in any transaction are taken seriously and acted on with the utmost in professionalism and integrity. In short
order Novo Integrated Sciences Inc. will be granted the right of first draw against the coupon resulting in a more significant role for
RC as it relates to ensuring a good compliance standing. Our address of business is for convenience and privacy purposes as well as security,
the simple fact that this needs to be explained in any forum is a testament to the suspect motive behind the inquiry.”
About
Novo Integrated Sciences, Inc.
Novo
Integrated Sciences, Inc. is pioneering a holistic approach to patient-first health and wellness through a multidisciplinary healthcare
ecosystem of services and product innovation. Novo offers an essential and differentiated solution to deliver, or intend to deliver,
these services and products through the integration of medical technology, advanced therapeutics, and rehabilitative science.
We
believe that “decentralizing” healthcare, through the integration of medical technology and interconnectivity, is an essential
solution to the rapidly evolving fundamental transformation of how non-catastrophic healthcare is delivered both now and in the future.
Specific to non-critical care, ongoing advancements in both medical technology and inter-connectivity are allowing for a shift of the
patient/practitioner relationship to the patient’s home and away from on-site visits to primary medical centers with mass-services.
This acceleration of “ease-of-access” in the patient/practitioner interaction for non-critical care diagnosis and subsequent
treatment minimizes the degradation of non-critical health conditions to critical conditions as well as allowing for more cost-effective
healthcare distribution.
The
Company’s decentralized healthcare business model is centered on three primary pillars to best support the transformation of non-catastrophic
healthcare delivery to patients and consumers:
| ● | First
Pillar: Service Networks. Deliver multidisciplinary primary care services through (i) an
affiliate network of clinic facilities, (ii) small and micro footprint sized clinic facilities
primarily located within the footprint of box-store commercial enterprises, (iii) clinic
facilities operated through a franchise relationship with the Company, and (iv) corporate
operated clinic facilities. |
| | |
| ● | Second
Pillar: Technology. Develop, deploy, and integrate sophisticated interconnected technology,
interfacing the patient to the healthcare practitioner thus expanding the reach and availability
of the Company’s services, beyond the traditional clinic location, to geographic areas
not readily providing advanced, peripheral based healthcare services, including the patient’s
home. |
| | |
| ● | Third
Pillar: Products. Develop and distribute effective, personalized health and wellness product
solutions allowing for the customization of patient preventative care remedies and ultimately
a healthier population. The Company’s science-first approach to product innovation
further emphasizes our mandate to create and provide over-the-counter preventative and maintenance
care solutions. |
Innovation
through science combined with the integration of sophisticated, secure technology assures Novo Integrated Sciences of continued cutting-edge
advancement in patient-first platforms.
For
more information concerning Novo Integrated Sciences, please visit www.novointegrated.com.
Twitter,
LinkedIn, Facebook, Instagram, YouTube
Forward-Looking
Statements
This
press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section
21E of the Securities Exchange Act of 1934, as amended, or the Private Securities Litigation Reform Act of 1995. All statements other
than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements
can be identified by words such as “believe,” “intend,” “expect,” “anticipate,” “plan,”
“potential,” “continue,” or similar expressions. Such forward-looking statements include risks and uncertainties,
and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking
statements. These factors, risks, and uncertainties are discussed in Novo’s filings with the Securities and Exchange Commission.
Investors should not place any undue reliance on forward-looking statements since they involve known and unknown uncertainties and other
factors which are, in some cases, beyond Novo’s control which could, and likely will, materially affect actual results, levels
of activity, performance or achievements. Any forward-looking statement reflects Novo’s current views with respect to future events
and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy
and liquidity. Novo assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update
the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information
becomes available in the future. The contents of any website referenced in this press release are not incorporated by reference herein.
Chris
David, COO & President
Novo Integrated Sciences, Inc.
chris.david@novointegrated.com
(888) 512-1195
Exhibit
99.2
v3.23.3
Cover
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Oct. 06, 2023 |
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Entity Central Index Key |
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