Company sets closing date deadline of acquisition to August 10, 2023 — Acquisition is expected to significantly enhance total annual revenue and contribute positive net income to the company’s operating results
Transition to healthcare services company allows INVO to accelerate IVC volume, allowing for a greater share in total fertility cycle revenue
Targeting cash flow breakeven in 2024
SARASOTA, Fla., Aug. 3, 2023 — INVO Bioscience, Inc. (Nasdaq: INVO) (“INVO” or the “Company”), a healthcare services fertility company focused on expanding access to advanced treatment worldwide with its INVOcell® medical device and the intravaginal culture (“IVC”) procedure it enables, today announced it has extended the deadline to acquire Wisconsin Fertility Institute (WFI) to August 10, 2023. The acquisition is expected to provide significant scale to the Company’s operations and complement its INVO Center strategy. The Madison-based fertility center primarily offers conventional IVF procedures and generated more than $5 million in revenue and approximately $1.7 million of net income based on fiscal 2022 audited results.
“The acquisition of Wisconsin Fertility Institute accelerates the transformation of INVO from a medical device-only company to a healthcare services company, leveraging our unique and innovative INVOcell technology, to help democratize the fertility industry,” commented Steve Shum, CEO of INVO. “Representing our first acquisition, the closing of WFI represents a significantly important addition to our corporate growth plan, which now includes acquiring established and profitable existing practices in addition to building new INVO Centers. Further, the acquisition immediately adds scale and positive cash flow to our operations, with the potential to more than triple our gross revenues. We also expect to drive incremental growth at the clinic with the synergistic introduction of our INVOcell solution. We look forward to finalizing the transaction in the coming days.”
With the recent completion and clearance of the Company’s FDA 510k submission, the Company has now been able to eliminate the substantive costs associated with that multi-year effort. The Company has also implemented further expense reductions as part of its go-forward plan to focus on its healthcare service strategy.
“Looking ahead, we believe we have set an exciting foundation for the Company. Our existing operating INVO Centers are beginning to reach break-even status with ongoing growth occurring, while the WFI acquisition could add significant revenue and operating profits. Our core technology has been significantly enhanced and further validated with the recent 510(k) label expansion, and we have reduced certain overhead costs which we believe provides for a short pathway towards overall profitability,” Shum expanded.
About INVO Bioscience
We are a healthcare services fertility company dedicated to expanding the assisted reproductive technology (“ART”) marketplace by making fertility care accessible and inclusive to people around the world. Our commercialization strategy is focused on the opening of dedicated “INVO Centers” offering the INVOcell® and IVC procedure (with three centers in North America now operational), the acquisition of US-based, profitable in vitro fertilization (“IVF”) clinics and the sale and distribution of our technology solution into existing fertility clinics. Our proprietary technology, INVOcell®, is a revolutionary medical device that allows fertilization and early embryo development to take place in vivo within the woman’s body. This treatment solution is the world’s first intravaginal culture technique for the incubation of oocytes and sperm during fertilization and early embryo development. This technique, designated as “IVC”, provides patients a more natural, intimate, and more affordable experience in comparison to other ART treatments. We believe the IVC procedure can deliver comparable results at a fraction of the cost of traditional IVF and is a significantly more effective treatment than intrauterine insemination (“IUI”). For more information, please visit www.invobio.com.
Safe Harbor Statement
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company invokes the protections of the Private Securities Litigation Reform Act of 1995. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategies, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties, and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in our filings at www.sec.gov. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE INVO Bioscience, Inc.