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VANCOUVER, British Columbia, March 09, 2021 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “ Company ” or “ CloudMD ”), a telemedicine company seeking to revolutionize the delivery of healthcare to patients, is pleased to announce that it has closed its previously announced short form prospectus offering, on a bought deal basis. The Company issued a total of 18,500,000 common shares (the “ Shares ”) at the price of $2.70 per Share (the “ Offering Price ”) for aggregate gross proceeds to the Company of $49,950,000 (the “ Offering ”). The Offering was led by Canaccord Genuity Corp., Beacon Securities Limited and Echelon Wealth Partners Inc. on behalf of a syndicate of underwriters including Laurentian Bank Securities Inc. and Mackie Research Capital Corporation (the “ Underwriters ”).
In addition, 1,900,000 Shares were purchased by the Underwriters from Essam Hamza and Kanchan Thindal (collectively, the “ Selling Shareholders ”) at the Offering Price for aggregate gross proceeds to the Selling Shareholders of $5,130,000.
The Company issued the Underwriters an aggregate of 1,295,000 broker warrants (the “ Broker Warrants ”). Each Broker Warrant is exercisable to acquire one common share of the Company at the exercise price of $2.70 per common share for a period of 24 months from the closing date of the Offering.
Essam Hamza, CEO of CloudMD commented, “ I’m very proud of the team for closing another bought deal financing, which allows us to continue executing on our strategic M&A plan. CloudMD has seen significant growth over the last year and we remain committed to our vision of disrupting the delivery of healthcare, with a whole-person, patient-centric approach to care. Our focus remains on seamlessly integrating our platform of healthtech solutions to provide one, centralized product offering for our patients, providers and clients. We have seen some early successes on the integration which is already driving organic growth. Upon closing of the financing, we have strong balance sheet with approximately $100 million in cash, leaving us approximately $60 million following the closing of previously announced acquisitions. We are well-positioned to continue delivering growth while we actively review both organic and acquisitive growth opportunities. Thank you to our key stakeholders, syndicate partners and supportive shareholders for the confidence in our team and vision moving forward.”
CloudMD intends to use the proceeds of the Offering for strategic M&A activities.
About CloudMD Software & Services
CloudMD is digitizing the delivery of healthcare by providing a patient centric approach, with an emphasis on continuity of care. The Company offers SAAS based health technology solutions to healthcare providers across North America and has developed proprietary technology that delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, educational resources and artificial intelligence (AI). CloudMD currently services a combined ecosystem of over 500 clinics, almost 4000 licensed practitioners and 8 million patient charts across North America. For more information visit: investors.cloudmd.ca
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws, and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD"
Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
Julia Becker
Vice President, Investor Relations
Email:
julia@cloudmd.ca
investors.cloudmd.ca
Forward Looking Statements
This news release contains forward-looking statements that are based on CloudMD’s expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to its business plans and its intended use of the proceeds of the Offering. Although CloudMD believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. These forward-looking statements speak only as of the date on which they are made, and CloudMD undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
