CloudMD Closes Oversubscribed $20.8 Million Financing

CloudMD Software & Services (TSXV: DOC) this morning closed its previously announced short form prospectus, which was conduced on a bought deal basis. The financing saw the company raise $20.8 million in what was an oversubscribed placement that saw the full over-allotment option exercised.

The financing, led by Canaccord Genuity and Beacon Securities, saw a total of 15,065,000 common shares of the issuer sold at a price of $1.38 per share, with no warrant being offered in the finance.. Aggregate gross proceeds of $20,789,700 were collected as a result. 1,054,550 broker warrants were issued in connection with the financing, valid for a period of two years while containing an exercise price of $1.38 per share.

Proceeds from the financing are said to be intended for strategic M&A activities, as well as general corporate purposes. Notably, M&A is said to be focused on both North American and global expansion plans, based on commentary provided on the closing of the financing by CEO Essam Hamza.

CloudMD Software & Services last traded at $2.05 on the TSX Venture.

Information for this briefing was found via Sedar and CloudMD Software & Services. The author has no securities related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Full Disclosure: CloudMD Software & Services is a former client of Canacom Group.

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