HealthLynked (OTCQB:HLYK) told investors it has received the final $300,000 payment from the sale of its ACO Health Partners (AHP) subsidiary to PBACO Holdings.
The company said the final payment marks a 100% success rate in enrolling existing and new physician practices into Palm Beach Accountable Care Organization (ACO), which is managed by PBACO Holdings (PBA).
Since the January 2023 sale, HealthLynked (OTCQB:HLYK) said it has received a total of $3.25 million, including an initial $750,000 from the sale and an additional $2.5 million in participation-based consideration.
It also expects a further $500,000 in future savings in October 2024.
The company noted that it is set to receive net proceeds from Medicare Shared Savings attributed to AHP's performance in 2022, including allocation of expenses. Current projections estimate these proceeds will exceed $1 million, with payments anticipated in early October 2023.
Additionally, it said it has secured a six-month extension for the possibility of earning equity in the event that PBA launches an initial public offering (IPO) of its stock. While the deadline was set for August 1, 2024, it has been extended to February 1, 2025.
Should PBA go public, HealthLynked (OTCQB:HLYK) said it will receive shares corresponding to AHP’s 2021 earnings, times the underlying earnings (EBITDA) multiple used to value PBA’s IPO shares.
"Our collaboration with Palm Beach ACO has been outstanding, and we are excited about the prospects of continuing this successful partnership for years to come,” commented HealthLynked chief financial officer George O’Leary.
Contact the author at stephen.gunnion@proactiveinvestors.com