CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF,
Frankfurt: 6PH) (“
CloudMD” or the
“
Company”), a healthcare technology company
transforming the delivery of care, is providing an update on its
subsidiary, VisionPros, which was acquired on June 23, 2021. The
Company has been advised of claims from certain suppliers to
VisionPros for the repayment of rebates and reassessments for
approximately $3.73 million (the “
Claims”). The
Claims arise from violations of existing distribution agreements
VisionPros has with these suppliers and are in relation to the
business conducted by VisionPros prior to its acquisition by
CloudMD. The Company has strong relationships with these suppliers
and is working cooperatively with them to assess the Claims and to
negotiate the terms of new distribution agreements.
CloudMD’s Board of Directors has authorized the
Audit Committee to conduct a comprehensive review of the Claims and
the business of VisionPros. In connection with that review, the
Audit Committee will consider, among other things, the amount of
goodwill for this acquisition that will be reflected in the
Company’s annual financial statements for the year ended December
31, 2021.
The Audit Committee will also review and assess
the avenues available to the Company for recovery against the
former owners of VisionPros in connection with the Claims, which
would be in addition to the indemnification holdback of 1,090,909
shares and $3 million of cash as provided in the definitive
agreement for the acquisition.
The Audit Committee has commenced its review and
the Company will make further announcements as appropriate.
About CloudMD Software &
Services
CloudMD is transforming the delivery of
healthcare using technology and by providing a patient-centric
approach, with an emphasis on continuity of care. By leveraging
healthcare technology, the Company is building one, connected
platform that addresses all points of a patient’s healthcare
journey and provides better access to care and improved outcomes.
Through CloudMD’s proprietary technology, the Company delivers
quality healthcare through a holistic offering including hybrid
primary care clinics, specialist care, telemedicine, mental health
support, healthcare navigation, educational resources, and
artificial intelligence (AI). CloudMD’s business is separated into
three main divisions: Clinics and Pharmacies, Digital Solution and
Enterprise Health Solutions, the Company’s fastest growing
division. CloudMD’s Enterprise Health Solutions Division has built
a leading employer healthcare solutions, including its
Comprehensive Integrated Health Services Platform, which offers one
comprehensive, digitally connected platform for educational
institutions, corporations, insurers, and advisors to better manage
the health and wellness of their students, employees, and
customers.
CloudMD currently services a combined ecosystem
of over 7,000 psychiatrists, approximately 4,500 therapists and
counsellors, approximately 4,000 psychologists, over 22,000 family
physicians, over 34,000 medical specialists, over 1,500 allied
health professionals, over 500 clinics, and over 5 million
individuals across North America. For more information
visit: https://investors.cloudmd.ca.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD"Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
Julia Becker VP, Investor
Relationsjulia@cloudmd.ca(604)785-0850
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.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking
statements” and “forward‐looking information” within the meaning of
Canadian securities laws. Forward-looking statements in this press
release include, but are not limited to, statements with respect
to: the amount of the Claims; entering into new distribution
agreements; the amount of goodwill in the annual financial
statements; recovery against the former owners; and further
announcements. These statements are based upon information
currently available to CloudMD. All information that is not clearly
historical in nature may constitute forward‐looking statements. In
some cases, forward‐looking statements may be identified by the use
of terms such as “forecast”, “assumption” and other similar
expressions or future or conditional terms such as “anticipate”,
“believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”,
“predict”, “project”, “will”, “would”, and “should”.
Forward-looking statements contained in this press release are
based on certain factors and assumptions made by management of
CloudMD based on their current expectations, estimates,
projections, assumptions and beliefs regarding their respective
businesses and CloudMD does not provide any assurance that actual
results will meet management’s expectations. While they consider
these assumptions to be reasonable based on information currently
available to them, they may prove to be incorrect. Such
forward‐looking statements are not guarantees of future events or
performance and by their nature involve known and unknown risks,
uncertainties and other factors, including those risks described in
the respective Management’s Discussion and Analysis and Annual
Information Form of CloudMD (each of which have been filed under
its issuer profile on SEDAR and can be accessed at www.sedar.com),
that may cause the actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by such forward‐looking
statements. Although CloudMD has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward‐looking
statements, other factors may cause actions, events or results to
be different than anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate as
actual results and future events could vary or differ materially
from those anticipated in such forward‐looking statements.
Accordingly, readers should not place undue reliance on
forward‐looking information. CloudMD does not undertake to update
any forward-looking information, whether as a result of new
information or future events or otherwise, except as may be
required by applicable securities laws.
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