Datametrex AI (TSXV: DM) this morning announced that it is looking to expand its presence in the healthcare space. The company has signed a letter of intent to acquire a private unnamed telemedicine company through an all-stock transaction for $12.0 million.
The acquisition target reportedly operates on a subscription basis, wherein it connects patients with health care providers and doctors in real time. The tech behind the operation is expected to be integrated with Datametrex’s AI-based tech on a post-closing basis.
The letter of intent is valid for a period of thirty days from the date of the signing of the LOI, after which the company will enter into a definitive agreement for the acquisition. The transaction is slated to take the form of a share acquisition, with Datametrex acquiring a 100% stake in the firm, after which point it will become a wholly owned subsidiary.
“The impact of the acquisition of this telemedicine AI business cannot be minimized. The demand for telemedicine continues to be a large area of growth particularly with the current pandemic. We believe that adding this telemedicine element to our existing AI business will drive significant value for our stakeholders.”
Marshall Gunter, CEO of Datametrex AI
Currently, a purchase price of $12.0 million has been slated for the target, with the purchase to be settled via the issuance of 60 million units of the company. Each unit is to contain one common share and one common share purchase warrant, valid at a price of $0.25 per warrant for a period of two years.
The transaction is currently dependent on the signing of a definitive agreement and approval of the firms board of directors. The proposed transaction is currently slated to close by April 15, 2021.
Datametrex AI last traded at $0.26 on the TSX Venture.
FULL DISCLOSURE: DataMetrex AI Limited is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover DataMetrex AI Limited 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.
