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Great Elm Healthcare Stock Rises As Subsidiary Makes Acquisitions

Sam Boughedda trader
Updated 2 Mar 2021

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Tuesday’s premarket session has seen Great Elm Group (NASDAQ: GEG) shares climb after the company said a subsidiary of Great Elm Healthcare, Focus Respiratory LLC, has acquired Advanced Medical DME, LLC and PM Sleep Lab, LLC.

The acquired companies are providers of sleep testing, PAP, and other respiratory products and services in nine locations in Kansas and Missouri. Combined, the two companies reported unaudited revenues of approximately $5 million in 2020.

“The acquisition of these entities expands the Company’s existing operating footprint in the Midwestern U.S., with the addition of six locations in Kansas and entry into Missouri with three locations,” said Great Elm.

The company will also add an extra 2,500 active patients to its patient base and allow Great Elm to introduce ventilator and oxygen services to the acquired markets.

“We were attracted to the companies’ patient-centered philosophy and their talented managers and staff. We welcome these new patients and employees to the Great Elm Healthcare family and look forward to extending our offerings throughout Kansas and Missouri,” commented Peter A Reed, CEO of Great Elm Group Inc.

Great Elm’s share price is up 49.28% premarket, priced at $5.15.

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.