CloudMD to Acquire Snapclarity Inc., an Enterprise Mental Health Platform, Expanding Telehealth Offering to Include Mental Wellness
- A silent mental health crisis existed before the COVID-19 pandemic and has now been brought to the forefront as a crisis on its own.
- COVID 19 has created a global focus on mental and physical health.
- Snapclarity is a revolutionary digital mental health platform built on a multi-disciplinary, evidence based and outcome driven approach to wellbeing.
- The Snapclarity team has deep and extensive experience in mental health and the enterprise products market.
- CloudMD’s acquisition of Snapclarity supports two key objectives: 1) Strengthens CloudMD’s suite of virtual care solutions with the addition of a proven mental wellness solution and 2) Provides a direct and existing pathway into offering the suite of solutions to enterprise clients, including large insurers and employers, across Canada.
Vancouver, BC, July 16, 2020 - CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a telehealth company seeking to revolutionize the delivery of healthcare to patients, is pleased to announce that it has signed a binding term sheet (“Term Sheet”) to acquire 100% of Snapclarity Inc. (“Snapclarity”).
Snapclarity is a mental healthcare pioneer. Their on demand digital platform provides an assessment for an individual’s personal risk of mental health disorders resulting in a personalized care plan, access to online resources, a clinical health care team and the ability to match to the right therapists. Snapclarity’s product offering is a connected, collaborative model that leaves individuals feeling empowered, motivated and supported throughout their entire treatment journey.
“The COVID-19 pandemic is the most serious public health emergency of our lifetime and it has further deepened the mental health crisis we were already facing,” said Dr. Essam Hamza, CEO of CloudMD. Recent data tells us that over 56% of Canadians said the pandemic is having a negative impact on their mental health, with social isolation being the top contributing factor. This acquisition of Snapclarity is a transformational addition to CloudMD as we continue to strengthen our suite of virtual care solutions and make it easier for Canadians to get help from home. As a primary care physician for the past 20 years the importance of providing a viable tool for the mental health crisis is a deeply personal motivation for me.”
Snapclarity’s solution is utilized by employers, individuals, therapists and insurers. The Snapclarity platform offers a continuity of care program that effectively blends the supported intervention with technology and human touch that meets the needs of mild, moderate and chronic mental health issues. This is accomplished through a suite of digital tools that are designed by clinicians and grounded in evidence-based practices that are proven to positively impact outcomes.
CloudMD’s acquisition of Snapclarity will create the first and only Canadian telemedicine company that provides a top-tier digital primary care solution integrated with a clinically proven digital mental health care plan. The combination of these two facets of healthcare addresses an emergent market demand from direct conversations, market intelligence with enterprise clients, insurers, governments and other payors. Just like the pandemic has further presented the world with the urgent need to integrate physical and mental health management, CloudMD now has an integrated solution to match that need.
Healthcare can no longer be a siloed approach to mental and physical health but rather a recognition of the influence one has on the other. To date, employees have been put in the position of choosing a benefit program that only partially addresses their health issues. The combined forces of CloudMD and Snapclarity changes the landscape where employers can offer one solution that addresses the health needs of their workforce and eliminates the need of multiple vendors.
“The combination of our health solutions will be game changing for care. The disruptive potential of our technology integrated with CloudMD will accelerate adoption of holistic care plans,” notes Jeff Deriger, President of Snapclariy. “Managing return to work with consideration of mental and physical wellbeing is critical. Employers no longer have the luxury of offering a marketplace of options, nor can they carry the burden of related expenses. A combined CloudMD and Snapclarity will remove barriers to access while providing the market with hyper personalized, integrated mental and physical health care plans. Individuals and corporations are demanding a holistic continuum of care. We look forward to introducing a continuity of care in managing health utilizing a pioneered approach in supporting an individual’s wellbeing.”
Total consideration payable by the Company in connection with the acquisition is $3.35M, subject to certain holdbacks, payable as up to C$975,000 in cash and up to C$2,375,000 in shares of the Company (the “Purchase Price”) to be issued at $0.70 per share. All shares issued pursuant to the acquisition are subject to a two (2) year release. Additionally, subject to the achievement of certain performance conditions in 2021 and 2022, Snapclarity may earn an additional $3.65M in equity-based consideration. The acquisition is subject to customary closing conditions, including the execution of a definitive acquisition agreement and receipt of TSX Venture exchange approval. The Company anticipates a definitive agreement on or before August 14, 2020.
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.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD”
Chief Executive Officer
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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.
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