WLAF News has learned that Rennova Health is exhausting all efforts in order to meet a Feb. 28 deadline to purchase and keep Jellico Community Hospital open.
In a letter obtained by WLAF News dated Feb. 13, Jellico Community Hospital Interim CEO Gene Miller informed JCH employees “If the transaction with Rennova Health does not occur, February 28, 2019, is the expected date when the facility will close.” Miller closed by writing “We remain hopeful that this transition will take place; however, we want each of you to have as much notice as possible.”
Last November, Rennova Health entered into an asset purchase agreement to acquire certain assets related to an acute care hospital at Jellico and an outpatient clinic located at Williamsburg, Ky. Last Friday, Rennova delivered a letter terminating the purchase agreement pursuant to its terms stating the financials didn’t match the purchase price. As a result, Rennova exercised its termination right regarding the pending deal.
A source close to the parties told WLAF News that Rennova CFO Marlene McLennan and her team will be in Jellico all next week. It was made known to WLAF News that Rennova is clearly trying to revise the agreement with hopes of completing a new agreement.
Rennova provided a copy of its filing with the US Securities and Exchange Commission. SEE HERE. A phone call to Interim CEO of Jellico Community Hospital Gene Miller was not returned. (WLAF NEWS PUBLISHED – 02/15/2019-6AM)