Cosmos Health Extends and Updates its Agreement to Acquire ZipDoctor, Inc., a Telehealth Company, from American International Holdings Corp

Rhea-AI Summary

Cosmos Health (Nasdaq:COSM) has extended its non-binding letter of intent to acquire ZipDoctor Inc. from American International Holdings Corp. (AMIH), successfully renegotiating the acquisition price. This telemedicine platform provides direct-to-consumer access to certified physicians and mental health counselors, projected to capture a sizeable share of the U.S. telehealth market, valued at $23.8 billion in 2021 and expected to reach $309.9 billion by 2030. The updated agreement remains effective until February 15, 2023. CEO Greg Siokas expressed optimism for the acquisition, highlighting potential growth in health services.

Positive

• Renegotiated acquisition price for ZipDoctor improves payment terms.
• Access to the fast-growing U.S. telehealth market, projected to grow at a CAGR of 45.1%.
• Plans to expand ZipDoctor's services, enhancing revenue potential.

Negative

• None.

Tapping Into the Fast Growing Multi Billion Dollar U.S. Telehealth Market

CHICAGO, IL / ACCESSWIRE / January 20, 2023 / Cosmos Health, Inc. ("the Company") (Nasdaq:COSM), a global healthcare group with proprietary lines of nutraceuticals and distributor of pharmaceuticals, branded generics, OTC medications and medical devices, announced today that it has extended and updated its previously issued non-binding letter of intent to acquire ZipDoctor Inc. from American International Holdings Corp (AMIH). Cosmos Health has successfully renegotiated the acquisition price of ZipDoctor to achieve much improved payment terms. The updated letter of intent will remain effective until February 15, 2023.

ZipDoctor Inc., a wholly owned subsidiary of American International Holdings Corp. (OTC: AMIH), is a direct-to-consumer subscription-based telemedicine platform, that expects to provide its customers affordable, unlimited, 24/7 access to board certified physicians and licensed mental and behavioral health counselors and therapists. ZipDoctor's online telemedicine platform will be available to customers across the United States and offers English and Spanish coverage with virtual visits taking place either via the phone or through a secured video chat platform. ZipDoctor customers will be able to subscribe through their website at www.ZipDoctor.co and are only required to pay a monthly fee, which is determined based on whether they are an individual, a couple, or a family.

Greg Siokas, Chief Executive Officer of Cosmos Health stated: "We are enthusiastic about the proposed addition of ZipDoctor to Cosmos Heath's family of companies. The telehealth industry is set for strong growth, and we believe that ZipDoctor, with the proper investment from Cosmos, can become a significant player in the space. Furthermore, we intend to expand on ZipDoctor's current primary care and mental health service offerings to include the ability to speak to a doctor to seek additional medical treatments related to and including men's and women's health and wellness issues, weight loss and other similar treatments. Furthermore, we are satisfied with the renegotiated price of the acquisition, as we are always looking to increase our returns on investment."

According to Nova One Advisor, the U.S. Telehealth market size was valued at $23.8 billion in 2021 and is expected to grow to $309.9 billion by 2030, growing at a compound annual growth rate (CAGR) of 45.1% from 2022 to 2030. The shortage of healthcare specialists and primary care physicians in the U.S. is one of the major factors expected to accelerate the market growth in the U.S. according to the Association of American Medical Colleges (AAMC) estimation, there is an estimated shortage of both primary and specialty care physicians between 37,800 and 124,000 physicians by 2034. In 2021, the Centers for Medicare and Medicaid Services expanded reimbursable telehealth codes for the 2021 physician fee schedule.

Update on the ongoing review of COSM trading patterns: Cosmos would like to inform investors that it has recently received trading activity data from Shareholder Intelligence Services, LLC. Management is carefully reviewing the data in order to develop its next course of action.

About Cosmos Health, Inc

Cosmos Health Inc. (Nasdaq:COSM) is a global healthcare group that was incorporated in 2009 and is headquartered in Chicago, Illinois. Cosmos Health is engaged in the nutraceuticals sector through its own proprietary lines of products "Sky Premium Life" and "Mediterranation." Additionally, the Company is operating in the pharmaceutical sector through the provision of a broad line of branded generics and OTC medications and is involved in the healthcare distribution sector through its subsidiaries in Greece and UK serving retail pharmacies and wholesale distributors. Cosmos Health is strategically focused on the R&D of novel patented nutraceuticals (IP) and specialized root extracts as well as on the R&D of proprietary complex generics and innovative OTC products. Cosmos has developed a global distribution platform and is currently expanding throughout Europe, Asia and North America. Cosmos Health has offices and distribution centers in Thessaloniki and Athens, Greece and Harlow, UK. More information is available at www.cosmoshealthinc.com and www.skypremiumlife.com.

Forward-Looking Statements

With the exception of the historical information contained in this news release, the matters described herein, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by, or that otherwise, include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could", are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. These statements, involve unknown risks and uncertainties that may individually or materially impact the matters discussed, herein for a variety of reasons that are outside the control of the Company, including, but not limited to, the Company's ability to raise sufficient financing to implement its business plan, the impact of the COVID-19 pandemic and the war in Ukraine, on the Company's business, operations and the economy in general, and the Company's ability to successfully develop and commercialize its proprietary products and technologies. Readers are cautioned not to place undue reliance on these forward- looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company's filings with the SEC, which are available at the SEC's website (www.sec.gov). The Company disclaims any intention or obligation to update, or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
Lytham Partners, LLC
Ben Shamsian
E: shamsian@lythampartners.com
P: 646-829-9701

SOURCE: Cosmos Health Inc.

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FAQ

What is the purpose of Cosmos Health's acquisition of ZipDoctor?

The acquisition aims to integrate a telemedicine platform to enhance Cosmos Health's healthcare offerings.

What are the financial terms of the ZipDoctor acquisition?

Cosmos Health has successfully renegotiated the acquisition price for better payment terms, though specific figures were not disclosed.

How does the acquisition of ZipDoctor impact Cosmos Health's growth?

The acquisition positions Cosmos to tap into the rapidly growing U.S. telehealth market, expected to reach $309.9 billion by 2030.

What services does ZipDoctor provide?

ZipDoctor offers affordable, unlimited access to certified physicians and mental health counselors through a subscription model.

When is the updated agreement for the ZipDoctor acquisition effective until?

The updated letter of intent remains effective until February 15, 2023.