Update: Mitesco, Inc. Continues on Uplist Path, Evaluates Potential Joint Venture and Alternative Funding Opportunities for The Good Clinic Business
Mitesco (OTCQB: MITID) announced its plan for an uplist to Nasdaq, including a potential reverse stock split of up to 4:1 to meet listing requirements. The company is focusing on improving its subsidiary, The Good Clinic, which has high client satisfaction ratings but is not yet cash flow positive. Mitesco aims to adjust services and staffing to achieve profitability and is exploring partnerships with insurance providers for growth without relying heavily on public capital. The company is committed to operational efficiency amidst challenging equity markets.
- High customer satisfaction ratings (4.9-5 out of 5) for The Good Clinic based on almost 400 reviews.
- Plans to improve operational efficiency and reduce reliance on public funding.
- The Good Clinic is currently not cash flow positive.
- Need for a reverse stock split to meet Nasdaq listing requirements.
Minneapolis, MN, Dec. 19, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Mitesco, Inc. (OTCQB:MITID and www.mitescoinc.com, the “Company” or “Mitesco”) today discusses its recent actions to support its planned uplist to Nasdaq, and certain adjustments to its “The Good Clinic” business operations including the possibility of direct investments into the wholly owned subsidiary, or a joint venture.
“During the last few weeks, we have taken the opportunity to evaluate the business operations of The Good Clinic, LLC (the “Good Clinic”) business unit with a view toward increased efficiency and reduced reliance on capital injections from the public holding company, Mitesco. We believe we have achieved ‘proof of concept’ with clients giving us very high ratings on the quality of our services as indicated in client reviews on Google and ZocDoc, with almost 400 reviews where we are rated between 4.9 and 5 out of a possible rating of 5. However, because we are not cash flow positive and, given the current status of the equity markets, we must now adjust our plans to make that a near-term priority.
“During the next few weeks, we intend to adjust our services offerings, staffing, and overhead, as well as our marketing plans such that we may achieve profitability for this business unit. We are also evaluating relationships with insurance-oriented providers that have a need for captive clinic operations and we may accept investment in Good Clinic in either a straight equity infusion in a ‘joint-venture’ oriented approach or through a debt facility that would allow the Good Clinic business to grow without the same level of funding from the publicly held parent organization,” explained Larry Diamond, CEO.
As the Company evaluates potential partnerships it is considerate of the need to support the insurance providers unique to each local market. As such, going forward, it intends to seek a relationship with a supporting partner in each market before embarking on a buildout in that marketplace. In doing so it believes it will be able to achieve profitable operations more rapidly through access to an incumbent client base that an insurance provider may bring when compared to a fully independent approach.
One of the Company’s Board members, Ms. Shelia Schweitzer, is spearheading the effort to evaluate potential partners. She is an accomplished senior executive with 40 years of experience in healthcare investing including stints with Optum and other insurance-oriented groups. Interested parties may reach Ms. Schweitzer through her email: schweitzersheila1@gmail.com.
With regard to its planned uplist to Nasdaq, in order to ensure the Company is in a position to meet Nasdaq’s initial listing requirements, the Company has filed a preliminary proxy on Form 14C seeking shareholder approval to effect a reverse stock split of up to 4:1 if necessary for the Company’s common stock share price to meet the minimum bid price at listing as required by Nasdaq.
About The Good Clinic™
A wholly owned subsidiary of Mitesco, Inc. (www.mitescoinc.com), The Good Clinic, LLC is a tech-forward, whole-person primary care practice that co-partners with clients ages 12 and older. Staffed by experienced nurse practitioners focused on preventive care, The Good Clinic™ offers clients routine medical care, chronic condition management, acute care, and wellness care services with both in-person and virtual care options. Founded in 2020 and operating six Minnesota clinics with plans to expand nationwide, the executive team includes the key clinical and operational professionals who brought MinuteClinic to scale. Learn more at thegoodclinic.com.
About Mitesco Inc.
Mitesco is building a next-generation healthcare solution, providing healthcare services and technology to make healthcare more accessible, higher quality, and more affordable. The Mitesco team has extensive experience in building successful growth situations within the healthcare industry, using both organic and acquisition growth strategies. Mitesco embraces that when consumers' expectations are exceeded the business performance does so as well. Mitesco operations and subsidiaries include The Good Clinic, LLC . The Good Clinic (www.thegoodclinic.com) is a wholly-owned subsidiary of Mitesco N.A. LLC, the holding company for North American operations. Learn more at mitescoinc.com and twitter.com/mitescoinc.
Contact:
Mitesco Investor Relations
Jimmy Caplan
jimmycaplan@me.com
512.329.9505
FAQ
What is Mitesco's plan for Nasdaq uplisting?
What challenges does The Good Clinic face?
What is the customer satisfaction rating for The Good Clinic?
How does Mitesco aim to grow The Good Clinic?
