CloudMD Sells Off Remaining EMR Assets For US$6.3 Million
CloudMD Software & Services (TSXV: DOC) continues to shed assets as it looks to achieve profitability. The company has sold its electric medical records operation in the US, along with its practice management and revenue cycle management assets.
The assets were sold to N. Harris Computer Corporation in what is believed to be an all-cash transaction. The sale amounts to a total figure of US$6.3 million, of which US$5.5 million was reportedly paid upon closing, with the reminder held as holdback.
“We continue to successfully execute our strategy of focusing on our higher growth and margin businesses while surfacing value from non-core assets in our portfolio. The leadership team’s focus is on growing our core Health and Wellness Services business and executing on our expanded pipeline in our Health and Productivity Solutions business, particularly our remote patient monitoring platform,” commented CEO Karen Adams on the asset sale.
The transaction follows a sale in October of 2022, when the company sold its Canadian EMR assets, along with three primary healthcare clinics, to competitor Well Health (TSX: WELL). The EMR, referred to as Cloud Practice, at the time was said to be the second largest OSCAR-based platform used by physicians. With a total sales figure of $5.75 million, the transaction represented a loss for CloudMD, whom collectively paid $9.7 million for the assets previously.
In its most recent quarter, CloudMD reported revenues of $26.1 million, along with a net loss of $7.1 million. The company subsequently replaced CFO John Plunkett with that of Prakash Patel, who came from Elevation Capital.
CloudMD Software & Services last traded at $0.135 on the TSX Venture.
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