CloudMD Announces Closing of $13 Million Oversubscribed Bought Deal Financing
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
Toronto, ON, June 2, 2020 - CloudMD Software & Services Inc. (CSE: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a telemedicine company seeking to revolutionize the delivery of healthcare to patients, is pleased to announce that it has closed its previously announced short form prospectus offering, on a bought deal basis, including the full exercise of the underwriters’ over-allotment option. The Company issued a total of 21,357,800 units (the “Units“) at the price of $0.70 per Unit for aggregate gross proceeds of $14,950,460 (the “Offering“). The Offering was led by Canaccord Genuity Corp. and Beacon Securities Limited on behalf of a syndicate of underwriters including Paradigm Capital Inc. and Echelon Wealth Partners Inc. (the “Underwriters“). The Company issued the Underwriters an aggregate of 1,495,046 broker warrants (the “Broker Warrants”). Each Broker Warrant is exercisable to acquire one common share of the Company at the exercise price of $1.00 per common shares for a period of 24 months from the closing date of the Offering.
Each Unit is comprised of one common share (each a “Common Share”) and one-half of one common share purchase warrant of the Company (each a “Warrant”). Each Warrant shall be exercisable to acquire one common share of the Company for a period of 24 months from closing of the transaction at an exercise price of $1.00 per Warrant.
Essam Hamza, CEO of CloudMD commented, “Closing this financing is a very important inflection point for the Company and we thank our syndicate for their diligent efforts and welcome our new shareholders. We are excited to further execute on our growth strategy and this injection of capital will accelerate our M&A efforts.”
CloudMD intends to use the proceeds of the Offering for strategic M&A activities and general corporate purposes.
TSX Venture Listing Update
Pursuant to the closing of the Offering, CloudMD has received approval to list its common shares on the TSX Venture Exchange (“TSXV”). CloudMD expects its common shares will commence trading on the TSXV under the same ticker symbol “DOC” on Thursday, June 4, 2020. The Company’s common shares will be delisted from the Canadian Securities Exchange . Shareholders of the Company are not required to take any action with respect to their shareholdings in connection with the Company’s listing on the TSXV.
About CloudMD Software & Services
CloudMD is digitizing the delivery of healthcare by providing patients access to all points of their care from their phone, tablet or desktop computer. The Company offers SAAS based health technology solutions to medical clinics across Canada and has developed proprietary technology that delivers quality healthcare through the combination of connected primary care clinics, telemedicine, and artificial intelligence (AI). CloudMD currently provides service to a combined ecosystem of 376 clinics, over 3000 licensed practitioners and almost 3 million patient charts across its servers.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws, and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD”
Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
CloudMD Software & Services Inc.
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, listing on the TSXV and its intended use of the proceeds of the Offering. 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 Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.