CloudMD Acquires Medical Clinic, Adding $3 Million To Topline Revenue

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.

"COVID-19 and the cash injection from the most recent financing were transformational for us and accelerated our growth plans by 3-5 years. The funds raised gives us a war chest of capital to deploy on strategic, accretive acquisitions already in our due diligence pipeline. The acquisition of this clinic not only increases our top line revenue by $3 million, but it’s also an important part of our growth strategy as we expand our hybrid digital clinic footprint across Canada and the United States." 
Dr Essam Hamza, CEO

The firm expects to enter a definitive agreement related to the acquisition by July 31, 2020.

Altamira Gold Corp. — sponsored Sponsored · Altamira Gold Corp.

CloudMD Software & Services last traded at $0.72 on the TSX Venture.


FULL DISCLOSURE: CloudMD Software & Services is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover CloudMD Software & Services on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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