CloudMD Sees $2.3 Million First Tranche Of Placement Close

As previously indicated, CloudMD Software & Services (CSE: DOC) has closed the first tranche of its private placement for $2.3 million. Funds raised are expected to be put towards capital expenditures and general working capital.

In connection with the offering, CloudMD has issued a total of 4,875,449 units at a price of $0.48, for gross proceeds of $2.34 million. Each unit consists of one common share, and one common share purchase warrant at a price of $0.70 for a period of 24 months from the date of close.

A total of 238,147 common shares and 500,109 warrants were issued in connection with the offering as a finders fee. Each warrant has a maturity of 24 months, and an exercise price of $0.70.

Given market conditions, we are pleased to close the first tranche financing with Gravitas Securities support. This is a pivotal moment in the company’s growth and we are well positioned to meet the increasing demand for our services including virtual care.

Dr. Essam Hamza, CEO of CloudMD

The second and final tranche of the filing for the $3.0 million financing is expected to close in the coming days. The company has previously identified that the financing has been oversubscribed to on an overall basis, with the initial tranche closing to secure near term funds for the company. The remaining funds have seen administrative delays in association with the ongoing coronavirus pandemic, for which CloudMD is rapidly onboarding physicians to its telehealth platform to help combat.

CloudMD Software & Services last traded at $0.44 on the CSE.

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