Rennova Health Inc (NASDAQ:RNVA) has been growth vertically as far as its size and profits are concerned. Apparently, it has announced its wish to “spin off” separate itself as an entity where its Advanced Services Group (AMSG) will be allowed to trade independently. The separation of its core services is basically aimed at ensuring a free tax distribution to Rennova stockholders. The process is expected to end in September this year as per the agreement. The process will include the registration of the separate entity using the Form 10 as well as the Security and Exchange Commission after the agreement and consent from various stakeholders.
What are the Core Targets of the Ultimate Spinoff by Rennova Company?
The main aim of allowing or welcoming the spinoff is basically to create two separate entities which will work as two publicly traded companies. With the two companies in place, each entity will be free to focus and develop strategies which will suit their needs as well as their operational plans.
According to Seamus Lagan, the Chief Executive Officer of Rennova, the current undertaking will add value to its stockholders hence allowing them to develop their own management styles and team. The AMSG is expected to be a platform readily available for both patients and health providers.
Benefits of Rennova Inc. Operating Separately from AMS Group
It is a fact that AMS Group has been under the wings of Rennova Inc. for a number of years and for all that while it has been suffocating from too much investment from Rennova. But such investment has helped this group in developing crucial technological components in health and medicine. While applying IT crucial for the formation of expert systems. Currently, AMSG is applying clinical data, patent molecular testing and machine learning as part of its modern service delivery. This is major breakthrough for Rennova which is the initial host company.
According to different sources, Dr. Scott Jenkins fits to be the CEO of AMG because of his experience in pharmaceuticals, health IT and venture investments. With such an expertise, it is expected that AMSG will attract the top talent team hence enhancing competitiveness as far as other companies that have embraced technology in health are concerned.