VANCOUVER, British Columbia, Oct. 15, 2020 (GLOBE NEWSWIRE) -- 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 closed the previously announced acquisition of Snapclarity Inc. (“Snapclarity”).
Snapclarity is a pioneer, on-demand, digital platform that provides an assessment for mental health disorders which includes a personalized care plan, access to online resources, a clinical health care team and the ability to match to the right therapists. The platform utilized by employers, individuals, therapists and insurers offers a continuity of care program that effectively blends the supported intervention with technology, artificial intelligence and human touch. This is accomplished through a suite of proprietary digital tools that are designed by clinicians and grounded in evidence-based practices that are proven to positively impact outcomes. Individuals, employees and patients feel empowered, motivated and supported throughout their entire treatment journey.
The COVID-19 pandemic’s global disruption has been a catalyst for an increase in mental health illnesses and has created a prevalent need for options to triage and offer continuity of care virtually. According to the Journal of the American Medical Association (JAMA, Oct 12, 2020), “This devastating pandemic has affected nearly every aspect of daily life. While nations struggle to manage the initial waves of the death and disruption associated with the pandemic, accumulating evidence indicates another “second wave” is building: rising rates of mental health and substance use disorders. This imminent mental health surge will bring further challenges for individuals, families, and communities including increased deaths from suicide and drug overdoses.”
This acquisition makes CloudMD one of the only telemedicine companies that provides an integrated digital platform that combines top-tier primary care with clinically-proven mental health support. The combination of these two facets of healthcare addresses an emergent market demand from enterprise clients, insurers, governments and other payors. Technology, human touch and artificial intelligence enables the ability to provide the highest quality of care.
Snapclarity will also be integrated into CloudMD On Demand, an online telemedicine service that aims to provide turnkey and readily accessible virtual healthcare options to enterprise level partners. Individuals, patients and employees are looking for a comprehensive approach to physical and mental healthcare. It is well documented that often times there is direct relationship between mental and physical health and having one, centralized, whole person care platform is both important and effective.
Currently, companies have siloed health programs that are costly and ineffective in providing a holistic care plan focused on ease of access, individual needs and recovery. This acquisition dramatically changes the landscape where employers can now offer one solution that addresses the comprehensive health needs of their workforce and eliminates the need of multiple vendors. Now, individuals have access to appropriate benefit programs that address all their healthcare needs. Healthcare teams consult with individuals to determine the appropriate whole person treatment plan to accelerate recovery while lowering group benefit costs. The employee experience is elevated with a digital door experience that results in the right care for the right issue at the right cost.
Terms of Acquisition
CloudMD has acquired 100% of Snapclarity by way of a three-cornered amalgamation pursuant to the provisions of the Canada Business Corporations Act. 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, to be issued at a deemed price of $0.70 per share. All shares issued pursuant to the acquisition are subject to a two (2) year release. Additionally, subject to future TSX-V approval and the achievement of certain performance conditions in 2021 and 2022, Snapclarity may earn up to an additional $3.65M in equity-based consideration.
About Snapclarity
Snapclarity Inc. is the leading digital, on-demand mental healthcare platform dedicated to creating a connected care experience that puts accessible, preventative mental health support in the hands of Individuals. Snapclarity supports those who need it most with easy identification of risk factors, early intervention, evidence-based treatment plans, and outcome-driven results. To learn more about Snapclarity visit: www.snapclarity.com and to download the individual app please visit the Apple App Store and/or the Google Play Store.
For more corporations and insurers needing more information on the suite of services please contact: info@cloudmd.ca
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. Visit www.cloudmd.ca for more information
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD"
Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
Julia Becker
VP, Investor Relations
julia@cloudmd.ca
Media enquiries: media@cloudmd.ca
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 does not accept responsibility for the adequacy or accuracy of this release.