Via tax-free allotment to company shareholders, Rennova Health Inc. intends to transition its Advanced Molecular Services Group (AMSG) to a publicly traded entity by late September pending appropriate paperwork with the SEC and other conditions.
The tactic aligns with the firm’s desire to establish two public companies whereby each can diversify its priorities and plans, with each building on its respective strengths, as well as establishing separate investment potential.
"We believe this spinoff will create value for Rennova stockholders while allowing AMSG to develop and mature with its own capable management team," Rennova CEO Seamus Lagan said. "AMSG's industry-changing platform will soon be available directly to providers and patients, and is consistent with the combination of science and technology that we believe will create improved healthcare in the future."
Rennova’s board of directors previously authorized a spinoff of its Health Technology Solutions business, also distributed to stockholders, in a similar vein.
Rennova Health of Palm Beach, Florida provides diagnostics and software solutions for the health care industry. In recent years, it has outlaid over $6 million for developing technology related to industry IT for systems, data management, proprietary testing and machine learning, or AI — which are expected to be consolidated into the AMSG division.
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