CloudMD Software & Services (TSXV: DOC) this morning announced that it has signed a binding term sheet to acquire an integrated medical clinic. The clinic currently operates with 24 healthcare professions across numerous specialties including mental health, women’s health sports medicine, gynecology and psychiatry.
Under the terms of the binding term sheet, the medical clinic is to be acquired for aggregate consideration of up to $700,000. Compensation is to consists of up to $200,000 in cash, along with $500,000 in common shares of the company. A portion of the consideration is subject to certain performance conditions.
The clinic is stated to be cashflow positive, and generated $3.0 million in topline revenue during fiscal 2019. Further, the clinic is said to be an early adopter of telemedicine delivery, and is a premier provider of integrated medical solutions. The firms systems already include online booking, EMR and telemedicine that can be simply integrated into CloudMD’s clinic and software network.
The firm expects to enter a definitive agreement related to the acquisition by July 31, 2020.
CloudMD Software & Services last traded at $0.72 on the TSX Venture.
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