CloudMD Closes Acquisition of West Mississauga Medical Clinic with 8 Family Doctors, 4 Specialists Serving Over 100,000 Patients

Rhea-AI Summary

CloudMD Software & Services Inc. (DOCRF) has successfully acquired a 51% stake in West Mississauga Medical Ltd., a clinic serving over 100,000 patients. The acquisition, valued at C$200,000, includes C$140,000 in cash and C$60,000 in stock, enhancing CloudMD's position in telemedicine. West Mississauga Medical has 8 family doctors and 4 specialists and has maintained operations during the COVID-19 pandemic. This strategic move supports CloudMD’s growth strategy by integrating West Mississauga into its telemedicine network across Canada.

Positive

• Acquisition of 51% stake in West Mississauga Medical strengthens CloudMD's market position.
• West Mississauga Medical has a solid patient base of over 100,000.
• Integration into CloudMD's EMR platform enhances service delivery.
• Acquisition aligns with CloudMD's national growth strategy.

Negative

• None.

VANCOUVER, British Columbia, Feb. 09, 2021 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a telemedicine company revolutionizing the delivery of healthcare to patients, is pleased to announce that it has closed the previously announced acquisition to acquire a majority interest (51%) in West Mississauga Medical Ltd. (“West Mississauga Medical”), a comprehensive family medicine and specialist medical clinic with 8 family doctors and 4 specialists serving over 100,000 patients.

West Mississauga Medical is a well-established medical clinic located on the border of Brampton, Mississauga and Milton in a high growth area. The clinic has served the community for over 16 years and remained open throughout the COVID-19 pandemic seeing patients via telemedicine and in-person. The acquisition is part of CloudMD’s national growth strategy which includes having well established brick and mortar clinic partners in major provinces. These clinics ultimately provide a strong, centralized patient base and footprint across the country. West Mississauga Medical will be integrated into the CloudMD EMR platform and its network of doctors and specialists will immediately start servicing CloudMD’s registered users and patients in Ontario.

Terms of Agreement

In consideration for the purchase of 51% of the outstanding securities of West Mississauga Medical, CloudMD has paid Shareholders aggregate consideration of C$200,000 payable as up to C$140,000 in cash and C$60,000 in shares of the Company. All shares issued pursuant to the acquisition are priced at the ten-day volume weighted trading price of the Company shares for the 10 trading days prior to the execution of the definitive agreement (see press release dated August 13, 2020).

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.

ON BEHALF OF THE BOARD OF DIRECTORS

“Dr. Essam Hamza, MD"
Chief Executive Officer

FOR ADDITIONAL INFORMATION CONTACT:

Julia Becker
VP, Investor Relations
julia@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. 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.

 

FAQ

What was the acquisition cost for CloudMD for West Mississauga Medical?

CloudMD paid a total of C$200,000 for the acquisition, consisting of C$140,000 in cash and C$60,000 in shares.

What percentage of West Mississauga Medical did CloudMD acquire?

CloudMD acquired a 51% majority interest in West Mississauga Medical.

How will the acquisition impact CloudMD's operations?

The acquisition allows CloudMD to integrate West Mississauga Medical into its EMR platform and expand its telemedicine services.

How many patients does West Mississauga Medical serve?

West Mississauga Medical serves over 100,000 patients.

What is the strategic importance of acquiring West Mississauga Medical for CloudMD?

The acquisition supports CloudMD's national growth strategy and enhances its presence in telemedicine.