- Karen Adams is appointed President of the Company to deliver on growth strategy and operational effectiveness
- Dr. Amit Mathur is appointed to newly created leadership role, President, US Operations, to focus on expansion into the United States
- Oncidium acquires an organization specializing in independent medical evaluations and health-related services
- Strategic tuck-in adds $17 million to Oncidium’s revenue run rate
VANCOUVER, British Columbia, June 16, 2021 (GLOBE NEWSWIRE) — CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a healthcare technology company revolutionizing the delivery of care, and its Board of Directors is pleased to announce the appointment of Karen Adams as President of the Company effective June 21, 2021. In her new role as President of CloudMD, Karen will deliver on the Company’s growth strategy and operational effectiveness, while leveraging technology to enable access to care. Karen will continue to oversee Employee Health Solutions (“EHS”) as a core component of her expanded portfolio.
The Company’s previous President, Dr. Amit Mathur, will now take on the primary responsibility of delivering CloudMD’s expansion into the United States, a key component of the corporate strategy. Dr. Mathur’s appointment to the newly created leadership role of President, US Operations is effective June 21, 2021.
“Our Company is rapidly growing and I am very proud of the entire team on its ability to continue executing and delivering on our growth strategy. The increasingly complex landscape of the public and private healthcare sector supports our mission of building one, connected healthcare ecosystem through navigation, coordination and seamless delivery of services that addresses all points of a patient’s care,” explained Dr. Essam Hamza, Chief Executive Officer of CloudMD. “Karen has an impressive track record of developing talent, driving innovation and delivering financial performance both within CloudMD and across multiple health and wellness industry sectors. Dr. Amit Mathur is a valuable member of our senior management team and I am excited for him to have a more focused role of leading our expansion in the US and developing a scalable organization.” He concluded, “I look forward to working with both Karen and Amit in their new roles and the rest of our senior management team as we continue to strengthen our rapid but disciplined growth.”
Further to the recent announcement of the acquisition of Oncidium Inc. (“Oncidium”), the Company is pleased to announce that Oncidium has acquired an organization specializing in independent medical evaluations and health-related services with 30 years of experience in the provision of these services to life & health providers, insurers, law firms and employers. The business is complementary to the existing assessment services division of Oncidium and will enable cost saving synergies through consolidation and integration. The business has also developed a market leading, workflow management solution that Oncidium and CloudMD will be able to incorporate company-wide. The highly accretive business generated $17 million in revenue with positive earnings before interest, tax, depreciation and amortization (“EBITDA”) for the 12 month period ending April 2021, and as such, the expected revenue for Oncidium, including the newly acquired business, is significantly increased, while the overall purchase price of Oncidium remains unchanged. CloudMD expects to close the acquisition of Oncidium this month.
Restricted Share Unit Grant
The Company has granted of an aggregate of 141,000 restricted share units (each, an “RSU”), with an award date of June 21, 2021, to certain officers and directors of the Company under the Company’s RSU Plan pursuant to the policies of the TSX Venture Exchange (the “Exchange”). Each RSU represents the right to receive, once vested, one common share in the capital of the Company for every RSU held.
The granting of RSUs are subject to any necessary regulatory approvals and requirements of the Exchange.
About CloudMD Software & Services
CloudMD is digitizing the delivery of healthcare by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company 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 7,000 psychiatrists, approximately 4,500 therapists and counsellors, approximately 4,000 psychologists, over 22,000 family physicians, over 34,000 medical specialists, over 1,500 allied health professionals, and over 5 million individuals across North America. CloudMD’s Enterprise Health Solutions Division includes one of the top 4 Employee Assistance Programs in Canada and offers a comprehensive, digitally connected platform for corporations, insurers and advisors to better manage the health and wellness of their employees and customers. For more information visit: https://investors.cloudmd.ca.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD”
Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
VP, Investor Relations
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 the expectations 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, including revenue projections, 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.
Non-GAAP and Non-IFRS Measure
This press release refers to “EBITDA” which is a non-GAAP and non-IFRS financial measure that does not have a standardized meaning prescribed by GAAP or IFRS. The Company’s presentation of this financial measure may not be comparable to a similarly titled measure used by other companies. This financial measure is intended to provide additional information to investors concerning the Company’s and Oncidium’s performance. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP and non-IFRS measure the Company uses as an indicator of financial health and excludes several items which may be useful in the consideration of the financial condition of the Company and Oncidium as applicable, including interest expense, income taxes, depreciation, and amortization.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.