West Palm Beach, Fla.-based Rennova Health had an eventful week. The company was delisted by Nasdaq on Tuesday for excessive stock splitting. Two days later, Rennova announced it entered into a definitive agreement to acquire a hospital from Franklin, Tenn.-based Community Health Systems.
At Tuesday's close of trading, Rennova's market cap was $112,793. Its shares were valued at less than $1, according to the Palm Beach Post.
Rennova, which began as a lab testing company, has faced financial challenges for years. The company reported a net loss to shareholders of $84.5 million in the first nine months of 2017. That's compared to a net loss of $22.1 million in the same period of the year prior.
Rennova entered the rural hospital business in January 2017 when it paid nearly $1 million for a 25-bed hospital in Oneida, Tenn., which had been closed for nearly seven months. Rennova reopened the hospital in August.
On Wednesday, Rennova announced it is adding a second hospital. The company entered into a definitive agreement to acquire 85-bed Tennova Healthcare-Jamestown (Tenn.) from Community Health Systems. Officials expect the transaction, which is subject to customary regulatory approvals, to close in the second quarter of 2018.
Rennova CEO Seamus Lagan expects the addition of the new hospital to help stabilize the company's finances.
"This acquisition further demonstrates our commitment to expanding Rennova's rural hospital model to provide necessary services to patients while securing more predictable recurring revenues," he said in a statement. "This hospital is approximately 38 miles … from our current hospital in Oneida and will benefit by receiving patients from Oneida that require operations and treatment not provided there. The synergy of management and services in a close geographic location creates numerous efficiencies for Rennova and will allow us to support a greater number of health care providers and residents in the local area."
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