CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF,
Frankfurt: 6PH) (“
CloudMD” or the
“
Company”), a healthcare technology and innovative
health services company transforming the delivery of care, is
excited to announce its newly formed Public Sector Division and
recent customer contracts awarded from various state, local, and
public sector organizations across North America. These contracts
provide meaningful revenue diversification for the Company and
opportunities to accelerate technology and service integration. The
new division will also create cross-selling opportunities to
integrate other services and solutions and provides a framework to
continue scaling CloudMD’s integrated health services platform
across North America.
The Public Sector Division combines experience
in winning large-scale RFPs and contracts with an extensive history
of successfully servicing public sector organizations across North
America. There is growing investment from the public sector aimed
at reducing wait lists, improving mental health and wellness,
addressing anxiety, depression, post-traumatic stress and substance
use issues. Through technology and efficient use of its health
network providers, CloudMD is changing the way healthcare is
delivered to address these issues. The Company already has a
diverse portfolio of clients within the public sector, and this
dedicated division is an important driver of CloudMD’s organic
growth going forward.
Through its interoperability platform, the
Company signed a contract to provide integration and technology
services to the New York City Department of Education to support
policy, process, and governance implementation. The NYC Department
of Education is one of the largest educational agencies in the
United States with over 1.2 million students.
The Company has also been awarded a contract for
its Substance Use Disorder (“SUD”) solution to support the opioid
crisis in North Carolina. The SUD solution utilizes CloudMD's
patented Real Time Intervention Platform (RTIP), which is expected
to be utilized across the country to help government agencies
combat the Opioid Epidemic that is currently sweeping through North
America. The SUD solution includes real-time risk identification
tools to enable multi-disciplinary teams to provide real time
intervention to help individuals with opioid issues get back on
track.
In addition, CloudMD’s Mental Health Support
Solutions service offering confirmed 107 new contracts in January
and February, covering up to 50,000 new employees under
subscription services. CloudMD has added several contracts within
the Public Sector Division including:
- Subscription iCBT services for a major college employer in the
Atlantic region of Canada
- Three new Employee and Family Assistance Programs (EFAP)
contracts for townships and municipalities across Canada
- Mental Heath Coaching for the employees of a major Ontario
university
CloudMD also continues to receive strong adoption and referrals
from the brokers/advisor markets and has a strong pipeline of
customers across North America.
"As a lifelong mental health caregiver, I have
seen the toll stigma and lack of access to services can take on
families. As a long time public servant, I saw the impact on
people, our healthcare system and our economy. People need supports
wherever and whenever they are ready - at home, at work, at school
- and I am proud to be working with CloudMD and our public sector
patient and employer partners across North America to provide
effective, holistic, and timely care that improves health equity
for patients, students, workers and their families,” said
Colin Andersen, Head of the Public Sector Division at
CloudMD. “We have already made great progress since
establishing our Public Sector Division and integrating MindBeacon
into CloudMD’s health care offerings. I’m excited about the
learnings our experienced US team brings to Canada and vice versa.
Our comprehensive platform connects individuals to proven treatment
that is outcomes-based, readily accessible and ideally positioned
to meet the growing health and wellness needs of individuals and
organizations alike.”
“We are focused on creating shareholder and
client value through embedding technology in delivery of
healthcare. This is aligned to our core purpose of creating
innovation in access to care and healthcare navigation,” commented
Karen Adams, President of
CloudMD. “The public sector is
recognizing the importance of investing in mental health solutions
that will reduce wait times, improve access with a lens on health
outcomes. We are fortunate to have the expertise to work with the
public sector to solve these problems and deliver an outcome-based
ROI.”
Essam Hamza, CEO of CloudMD
added, “As we look forward, I am excited about the future of
CloudMD. The combined companies provide incredible depth of
expertise, leadership and management that builds the operational
structure needed to evolve CloudMD for the next level of growth.
Our path to profitability is within sight and we have assembled a
leading executive management team that is extremely capable of
driving organic growth. Through our ongoing integration efforts, we
are well positioned to accelerate our expansion and scale the
business.”
The new division is led by Colin Andersen, Head
of Public Sector Strategy, Robert McKay, Director, Public Sector
Product Development and Sharad Rao, President, IDYA4, who together,
bring over 70 years collective experience working in government and
public sector roles.
Colin Andersen joins CloudMD’s executive team
from MindBeacon where he was responsible for MindBeacon’s
partnerships with all levels of government, post-secondary
institutions, public sector employers and workers’ compensation
boards and all parts of the healthcare ecosystem. Previously, Colin
was CEO of the Ontario Power Authority and prior to that Deputy
Minister of Finance; Revenue; and Policy, Cabinet Office; Acting
Deputy Minister as well as Associate Deputy Minister of Health and
Long-Term Care; and Secretary of Treasury Board, all with the
Ontario government.
Robert McKay brings extensive experience in
senior roles leading large-scale Government projects for the
Ministry of Health and Long-Term Care in Ontario, including the
provinces Psychotherapy Program as well as Cancer Care Ontario’s
Integrated Cancer Screening Program.
Sharad Rao is a senior executive focused on
process and technology in the Public Sector arena with State, City
and Federal Governments in the United States. Notably, he was a
Senior Executive with Deloitte Consulting, leading the Justice and
Public Safety segment of the law and justice industry segment for
North America. He has overseen several national projects which
involved the integration of disparate systems across all 50 states,
aggregating data and providing insights to various agencies to take
pro-active action.
CloudMD Software & Services Inc. also
announces that it issued an aggregate of 18,000 common shares (the
“Compensation Shares”) to the Company’s former Chief Medical
Officer, Dr. David Ostrow, on February 2, 2022. Dr. Ostrow provided
mentoring and advisory services to the Company, as initially
announced in a news release dated November 19, 2019. The
Compensation Shares were issued as settlement for indebtedness owed
to Dr. Ostrow arising from his consulting agreement with the
Company for the period from November 1, 2020, to October 31,
2021.
The Compensation Shares have a deemed price of
$1.16 per share, which is the discounted market price pursuant to
the policies of the TSX Venture Exchange, based on the closing
price of the Company’s common shares on TSX Venture Exchange on
October 31, 2021, the last trading day on which Dr. Ostrow’s
services were provided to the Company under the foregoing
arrangement. The Compensation Shares are also subject to a
four-month hold period.
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 solution, 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 news release contains “forward-looking
statements” and “forward-looking information” within the meaning of
Canadian securities laws. Forward-looking statements in this news
release include, but are not limited to, statements regarding: the
planned transition of the CFO and the Company’s plan, including in
respect of integration and cost optimization. These statements are
based upon information currently available to CloudMD’s management.
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 news 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 business and CloudMD does not provide any
assurance that actual results will meet management’s expectations.
While management considers 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 Company’s MD&A and most recent Annual
Information Form (which are filed under the Company’s 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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