HealthLynked (OTCQB:HLYK) to sell its ACO Health Partners subsidiary to PBACO Holding, which operates under the DBA Palm Beach Accountable Care Organization (PBACO).
HLYK will receive $750,000 in cash paid at signing of the definitive agreement and up to $2.25M incremental cash based on agreement to participate in PBACO.
In the event that PBA completes a planned IPO by August 1, 2024, the company will receive shares in the public entity at the time of the IPO with a value equal to AHP's 2021 earnings times the EBITDA multiple used to value the public entity's IPO shares, net of any cash consideration previously paid by the buyer.
HealthLynked (OTCQB:HLYK) will allocate up to $500,000 of the incremental $2.25M participation-based cash proceeds as an advance to AHP's participating physicians to incentivize participation in PBACO going forward and continued quality patient care.
Effective as of January 17, 2023, PBA assumes responsibility for managing AHP's business operations and operating expenses.