CloudMD Closes Divestment of Primary Care Clinics and Cloud Practice to WELL Health

Rhea-AI Summary

CloudMD Software & Services Inc. (OTCQX: DOCRF) has successfully completed the divestiture of its primary care clinics and Cloud Practice to Well Health Technologies Corp. for approximately $5.75 million in cash. This move aligns with CloudMD’s strategy to focus on its core employer healthcare offering and divest non-core assets. The company emphasizes that these divestitures not only provide non-dilutive capital but also streamline its operations towards higher-margin, profitable businesses.

Positive

• Closed divestiture of primary care clinics for $5.75 million, enhancing capital.
• Strategic focus on core employer healthcare services, improving long-term profitability.

Negative

• None.

VANCOUVER, British Columbia, Nov. 02, 2022 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a healthcare technology and innovative health services company transforming the delivery of care, is pleased to announce that it has closed the previously announced divestiture of its primary care clinics and Cloud Practice to Well Health Technologies Corp. (TSX:WELL, OTCQX: WHTCF) (“WELL”) for approximately $5.75 million in cash.

The closing of this transaction with WELL and the recently announced divestment of the pharmacy assets to Neighbourly Pharmacy Inc. (TSX:NBLY), is meaningful progress against CloudMD’s objective of divesting its entire Clinics & Pharmacies division. The Company is focused on the growth of its core employer healthcare offering. The Clinics & Pharmacies division, including the practitioner support technology, is not supportive of that growth and does not fit in CloudMD’s overall strategy of delivering a higher margin, profitable business long-term. The divestitures provide significant non-dilutive capital and a more focused business.

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 direct ecosystem of over 5,700 clinicians including, 1,800+ mental health practitioners, 1,600+ allied health professionals, 1,400+ doctors and nurses and covers 12 million individual lives across North America. For more information visit: https://investors.cloudmd.ca.

ON BEHALF OF THE BOARD OF DIRECTORS
        
“Karen Adams”
Chief Executive Officer

FOR ADDITIONAL INFORMATION, CONTACT:

Julia Becker
VP, Investor Relations
julia@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, including statements about the Company’s growth strategy and statements regarding the sale of non-core assets to Well, including the expected timing of closing of such sale. 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 (which is 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.

FAQ

What recent transaction did CloudMD Software & Services (DOCRF) complete?

CloudMD completed the divestiture of its primary care clinics and Cloud Practice to Well Health Technologies Corp. for approximately $5.75 million.

Why did CloudMD choose to divest its clinics and pharmacies?

The divestiture is part of CloudMD's strategy to focus on its core employer healthcare offerings and eliminate non-core operations.

How will the divestiture affect CloudMD's financial position?

The divestiture is expected to provide significant non-dilutive capital, aiding in the growth and profitability of CloudMD's core business.

What are CloudMD's future plans after the divestiture?

CloudMD aims to enhance its focus on high-margin, profitable business areas in employer healthcare services.