/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./
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.