CloudMD Announces Closing of $20.79 Million Oversubscribed Bought Deal Financing

Toronto, ON, September 22, 2020 - CloudMD Software & Services Inc. (TSXV: 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 (the “Offering“), including the full exercise of the underwriters’ over-allotment option.

Pursuant to the Offering, the Company issued a total of 15,065,000 common shares (the “Shares”) at a price of $1.38 per Share for aggregate gross proceeds of $20,789,700. The Offering was led by Canaccord Genuity Corp. and Beacon Securities Limited on behalf of a syndicate of underwriters including Echelon Wealth Partners Inc. and Mackie Research Capital Corporation (collectively, the “Underwriters“). The Company issued the Underwriters an aggregate of 1,054,550 broker warrants (the “Broker Warrants”). Each Broker Warrant is exercisable to acquire one common share of the Company at the exercise price of $1.38 per common share for a period of 24 months from the closing date of the Offering.

Essam Hamza, CEO of CloudMD commented, “Closing this financing is a very important inflection point for the Company as we continue our North American and global expansion plans. The capital raised from this bought deal allows us to continue making accretive acquisitions synergistic to our vision of providing whole person, continuity of care, while adding immediate value for our shareholders. We would like to 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 growth efforts.”

CloudMD intends to use the proceeds of the Offering for strategic M&A activities and general corporate purposes.

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.


“Dr. Essam Hamza, MD”
Chief Executive Officer


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 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 TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. 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.