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      NVOS Stock: What Explains 70% Gain In Novo Integrated Today?

      By Fahim Awan

      Published on

      August 15, 2023

      2:52 PM UTC

      NVOS Stock: What Explains 70% Gain In Novo Integrated Today?

      Novo Integrated Sciences, Inc. (NASDAQ: NVOS) has demonstrated a remarkable ascent, with its shares surging by an impressive 70.80% to reach $0.1211 during the early trading session on Tuesday.

      This upward trajectory follows a recent setback, as Novo Integrated stock experienced a 10% decline, closing at $0.0710 in the previous trading session. The catalyst behind this robust movement is a consequential agreement unveiled today, which has elicited a pronounced positive response in the NVOS stock.

      In an announcement of paramount significance, Novo Integrated (NVOS) has divulged its collaboration in a joint venture endeavor with Farm 7 Group Inc., an esteemed Canadian corporation known as “F7.” This partnership is encapsulated within the joint venture agreement (“JV Agreement”), a meticulously structured document that delineates their cooperative journey.

      The crux of the JV Agreement lies in its commitment to the development, management, and orchestration of structured financial mechanisms that underpin the realization and inauguration of the Kenya Agricultural Cooperative Project. This undertaking, primarily centered in Kenya, is distinguished by its focus on agricultural pursuits.

      It is characterized by the completion of formalized contracts, spanning a substantial 9 million hectares, catering to food-based agricultural commodities. The potential yield from this venture is projected to scale up to an impressive $350 million in revenue.

      In accordance with the tenets of the JV Agreement, a 30-year initial term is established, with profit distribution set at 75% to F7 and 25% to Novo.

      Remarkably, F7 has procured binding commodity buyer contracts, and airtight commitments for the annual acquisition of up to 1.6 million metric tons of food-based harvested commodities such as cassava starch, yellow corn, wheat, soybean, and sunflower.

      This strategic maneuver foretells substantial financial reverberations for both collaborating entities. Within this nexus, Novo Integrated is entrusted with the integral responsibilities of administration and structured financial solutions, underscoring its pivotal role in the joint venture.

      In alignment with its steadfast commitment, NVOS is resolute in advancing the commercialization of its distinctive proprietary products. This commitment extends to enhancing its suite of indispensable services and solutions, which redefine the landscape of non-catastrophic healthcare delivery in both the present and the future.

      Concurrently, Novo Integrated has judiciously secured unsecured, non-dilutive financing through a 15-year debt instrument, amounting to $70,000,000 in principal. This financial infusion, accounting for approximately $55,000,000 in net proceeds after due consideration, assumes heightened significance within the prevailing financial landscape marked by stringent capital markets and elevated costs associated with capital procurement.

      The accrued financial strength is poised to be instrumental, providing Novo Integrated with the bedrock capital required to galvanize its three-pillar business model. This capital infusion augments the foundation for propelling further implementation and robust expansion, all while upholding the principles of the innovative Novo ethos.

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