CloudMD Announces Closing of $55 Million Bought Deal Financing
March 09 2021 - 8:28AM
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.
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