Healthcare provider Novo Integrated Sciences (NIS) says HSBC has issued a 'ready, willing and able letter' that will enable the company to embark on a programme to monetise a standby letter of credit (L/C).

The Nasdaq-listed company anticipates receiving approximately US$78 million in gross funding this month through the standby L/C.

The funding is aimed at finalising NIS's acquisition of the Ophir Collection of gemstones, which will grant it complete and exclusive ownership of the gemstones.

Cash generation

When NIS said it had received written confirmation in a ready, willing and able letter from HSBC, it said this would provide the company with additional financing opportunities.

"The completion of this programme will allow the company to secure and inevitably generate significant surplus cash through the monetisation of the Ophir Collection," according to the company's CEO and board chairman, Robert Mattacchione, who has yet to provide details of how this will be achieved.

Repurchasing own stock

The company previously reported that it would use funds monetised via the L/C to repurchase tranches of up to US$5 million of its own stock in the open market at prevailing market prices or in privately negotiated transactions.

NIS's business model involves developing approaches to 'decentralised medicine', a concept that leverages medical technology and inter-connectivity to shift non-critical care patient-practitioner relationships to the patient's home and away from on-site visits to primary medical centres.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.