CloudMD Sees CEO Step Down From Role, Remain As Director

As the bottom falls out of the telehealth and telemedicine sector, we’re now starting to see the start of management exiting stage left. CloudMD Software & Services (TSXV: DOC) this morning announced that it’s chief executive officer, Dr Essam Hamza, will be stepping down from his role with the firm.

Hamza will be leaving his role as head of the company, a position he has held for five years, as of May 2. He’ll remain with the company as a director, while officially moving to the roll of “strategic advisor to the company.”

No real justification for Hamza’s departure was provided, with the soon-to-be-former CEO commenting that “It is time for the Company to move away from its founder, and I will be stepping down as CEO and passing the baton so a new CEO can lead the Company through its next phase of growth.” He added that he “looks forward to supporting the entire executive team through the Company’s next stage.”

Taking on the role of CEO on an interim basis will be that of Karen Adams, whom is currently President of the company. Adams will hold that role until a permanent CEO is found, a process which reportedly has already begun. Adams has been with the firm for two years, and has served the role of President since last June.

The announcement follows the immediate departure of former CFO Daniel Lee back in February. That departure is said to have been for personal reasons, and was effective as of the day before the announcement, however it was notably after a blunder in relation to the acquisition of VisionPros, whereby certain supplies claimed there is $3.73 million in unpaid rebates and reassessments.

As a result, the two top roles at the company will both be held by individuals on an interim basis.

CloudMD Software & Services last traded at $0.81 on the TSX Venture.

Information for this briefing was found via Sedar and the companies mentioned. 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.

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