Rennova Health (NSDQ:RNVA) said today that it plans to spin off its advanced molecular services division into an independent, publicly-traded company. The spin-off is slated to take place at the end of September.
Rennova’s board has also cleared the spin-off of its health technology solutions arm in a similar deal, according to the company.
“We believe this spinoff will create value for Rennova stockholders while allowing AMSG to develop and mature with its own capable management team,” CEO Seamus Lagan said in prepared remarks. “AMSG’s industry-changing platform will soon be available directly to providers and patients, and is consistent with the combination of science and technology that we believe will create improved healthcare in the future.”
AMSG will incorporate Rennova’s machine learning technology to develop precision treatments that are personalized to specific combinations of genes, Rennova reported.
The company said that it plans to place a particular focus on developing gene-based solutions for mental and behavioral health.
“For individuals and families being treated for psychiatric conditions, the key is to test for key genes at an affordable price to determine the right drug or drug combinations,” Rennova said. “With this in mind, AMSG will be opening its mobile store to bring the most affordable gene-based testing directly to consumers.”
The company appointed Scott Jenkins as CEO of AMSG.