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VANCOUVER, BC, Feb. 17, 2021 /CNW/ - 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 excited to announce that it has entered into an amendment (the "Amendment") to the previously announced engagement agreement with Canaccord Genuity Corp. Beacon Securities Limited and Echelon Wealth Partners Inc., on behalf of a syndicate of Underwriters (the "Underwriters"). The Underwriters have agreed to increase the size of the previously announced bought deal financing. Pursuant to the Amendment, the Underwriters have agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 20,400,000 common shares (the "Shares") at a price of $2.70 per Share (the "Offering Price") for aggregate gross proceeds of approximately $55 million (the "Offering"). Of the aggregate 20,400,000 Shares being offered, 18,500,000 Shares will be issued from treasury by CloudMD for gross proceeds of approximately $50 million (the "Treasury Offering") to the Company, and an aggregate of 1,900,000 Shares will be offered by Essam Hamza and Kanchan Thindal (together, the "Selling Shareholders") for aggregate gross proceeds to the Selling Shareholders of $5,130,000 (the "Secondary Offering" and together with the Treasury Offering, the "Offering").
The Company has granted the Underwriter an option to purchase up to an additional 3,060,000 Shares at a price of $2.70 per Share, exercisable at any time, for a period of 30 days after and including the Closing Date, which would result in additional proceeds of $8.3 million.
The Shares will be offered by way of a short form prospectus to be filed in all provinces of Canada except Quebec. The Offering is expected to close on March 9, 2021 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange ("TSXV") and the applicable securities regulatory authorities.
The Company will use best efforts to obtain the necessary approvals to list the Shares on the TSXV.
CloudMD intends to use the net proceeds of the Offering for strategic M&A activities, working capital and general corporate purposes.
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. For more information visit: investors.cloudmd.ca
ON BEHALF OF THE BOARD OF DIRECTORS
"Dr. Essam Hamza, MD"
Chief Executive Officer
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.
SOURCE CloudMD Software & Services Inc.
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