CloudMD Closes Acquisition of Snapclarity Inc., Creating One Centralized, Assessment-Oriented Platform That Provides Access t...
October 15 2020 - 6:30AM
CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF,
Frankfurt: 6PH) (the “
Company” or
“
CloudMD”), a telehealth company seeking to
revolutionize the delivery of healthcare to patients, is pleased to
announce that it has closed the previously announced acquisition of
Snapclarity Inc. (“
Snapclarity”).
Snapclarity is a pioneer, on-demand, digital
platform that provides an assessment for mental health disorders
which includes a personalized care plan, access to online
resources, a clinical health care team and the ability to match to
the right therapists. The platform utilized by employers,
individuals, therapists and insurers offers a continuity of care
program that effectively blends the supported intervention with
technology, artificial intelligence and human touch. This is
accomplished through a suite of proprietary digital tools that are
designed by clinicians and grounded in evidence-based practices
that are proven to positively impact outcomes. Individuals,
employees and patients feel empowered, motivated and supported
throughout their entire treatment journey.
The COVID-19 pandemic’s global disruption has
been a catalyst for an increase in mental health illnesses and has
created a prevalent need for options to triage and offer continuity
of care virtually. According to the Journal of the American Medical
Association (JAMA, Oct 12, 2020), “This devastating pandemic has
affected nearly every aspect of daily life. While nations struggle
to manage the initial waves of the death and disruption associated
with the pandemic, accumulating evidence indicates another “second
wave” is building: rising rates of mental health and substance use
disorders. This imminent mental health surge will bring further
challenges for individuals, families, and communities including
increased deaths from suicide and drug overdoses.”
This acquisition makes CloudMD one of the only
telemedicine companies that provides an integrated digital platform
that combines top-tier primary care with clinically-proven mental
health support. The combination of these two facets of healthcare
addresses an emergent market demand from enterprise clients,
insurers, governments and other payors. Technology, human touch and
artificial intelligence enables the ability to provide the highest
quality of care.
Snapclarity will also be integrated into CloudMD
On Demand, an online telemedicine service that aims to provide
turnkey and readily accessible virtual healthcare options to
enterprise level partners. Individuals, patients and employees are
looking for a comprehensive approach to physical and mental
healthcare. It is well documented that often times there is direct
relationship between mental and physical health and having one,
centralized, whole person care platform is both important and
effective.
Currently, companies have siloed health programs
that are costly and ineffective in providing a holistic care plan
focused on ease of access, individual needs and recovery. This
acquisition dramatically changes the landscape where employers can
now offer one solution that addresses the comprehensive health
needs of their workforce and eliminates the need of multiple
vendors. Now, individuals have access to appropriate benefit
programs that address all their healthcare needs. Healthcare teams
consult with individuals to determine the appropriate whole person
treatment plan to accelerate recovery while lowering group benefit
costs. The employee experience is elevated with a digital door
experience that results in the right care for the right issue at
the right cost.
Terms of Acquisition
CloudMD has acquired 100% of Snapclarity by way
of a three-cornered amalgamation pursuant to the provisions of the
Canada Business Corporations Act. Total consideration payable by
the Company in connection with the acquisition is $3.35M, subject
to certain holdbacks, payable as up to C$975,000 in cash and up to
C$2,375,000 in shares of the Company, to be issued at a deemed
price of $0.70 per share. All shares issued pursuant to the
acquisition are subject to a two (2) year release. Additionally,
subject to future TSX-V approval and the achievement of certain
performance conditions in 2021 and 2022, Snapclarity may earn up to
an additional $3.65M in equity-based consideration.
About Snapclarity
Snapclarity Inc. is the leading digital,
on-demand mental healthcare platform dedicated to creating a
connected care experience that puts accessible, preventative mental
health support in the hands of Individuals. Snapclarity supports
those who need it most with easy identification of risk factors,
early intervention, evidence-based treatment plans, and
outcome-driven results. To learn more about Snapclarity visit:
www.snapclarity.com and to download the individual app please visit
the Apple App Store and/or the Google Play Store.
For more corporations and insurers needing more information on
the suite of services please contact: info@cloudmd.ca
About CloudMD Software & Services
CloudMD is digitizing the delivery of healthcare
by providing patients access to all points of their care from their
phone, tablet or desktop computer. The Company offers SAAS based
health technology solutions to medical clinics across Canada and
has developed proprietary technology that delivers quality
healthcare through the combination of connected primary care
clinics, telemedicine, and artificial intelligence (AI). CloudMD
currently provides service to a combined ecosystem of 376 clinics,
over 3000 licensed practitioners and almost 3 million patient
charts across its servers. Visit www.cloudmd.ca for more
information
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD" Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
Julia BeckerVP, Investor
Relations julia@cloudmd.ca
Media enquiries: media@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 does not accept
responsibility for the adequacy or accuracy of this release.
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