Tech/BioTech

CloudMD

  • Juwan Richards

    Juwan's focus is on the intersection of investing and media. Simply defined as a creative with an appreciation for curating content that audiences can both learn from and enjoy. As a buy-and-hold investor, Juwan is a trend-spotter and likes to invest in companies at the ground level. As an avid believer of Web 3.0, his strategy consists of finding companies with a unique competitive advantage and interpreting their market sentiment within the retail audience.

    View all posts

We’ve technologically advanced a lot as a society, over the past decade. Nowadays, many people’s day-to-day lives rely solely on technology to carry out their needs, including simple things like getting groceries to lifesaving technologies such as health support systems. 

Companies in every arena have had to alter their business models and innovate just to stay in business – after all, remember what happened to Kodak? After refusing to go digital until the last minute, Kodak filed for bankruptcy in 2012. 

Industry disruption has become such a common occurrence that now, the technology industry is a giant in itself. Fledgeling companies consider solutions to inefficiencies and disrupt every other industry they can; after all, it pays to innovate. In light of the pandemic, telemedicine – the practice of caring for individuals remotely – has become one of the premier tech topics of 2020. 

CloudMD Software (TSX.V:DOC) (OTCQB: DOCRF) (FSE:6PH) is a SaaS (software-as-a-service) company that has found a way to integrate telemedicine with artificial intelligence to help serve patients and medical professionals more efficiently. The company has been on an extreme growth trajectory, with their stock price up nearly 300% from their initial TSX.V list price on June 18th, 2020. 

Since October 19th, the company has issued 5 press releases outlining key changes and catalysts for growth – read on for the key highlights from each: 

Key Personnel Changes 

Mena Beshay, originally the company’s CFO, now heads the Global Corporate Development unit. In this role, he will focus on the company’s growth via mergers and acquisitions (M&A) and other expansionary activities. Beshay is a Chartered Professional Accountant (CPA) with over 16 years of experience in auditing, accounting, and entrepreneurial management. Previously, he has fulfilled duties in senior roles at Deloitte, Domtar, and Enercare.  

Next, we’ve got Daniel Lee, a capital markets veteran who will take on the role of Chief Financial Officer.  Lee will focus primarily on the financial operations and direction of CloudMD in its pursuit to grow and scale across the globe. Lee has over 20 years of experience in similar roles, including senior leadership for publicly listed technology companies, including Photon Control (TSX:PHO) and BSM Technologies (acquired by private company, Geotab Inc., in late 2019). 

CloudMD Increases Bought Deal Public Offering to $32.4 Million 

Firstly, let’s go over what a “Bought Deal” means: this is a financing in which ainstitution or group guarantees the successful raise of capital through the issuing of shares. In English, this means that the financial group (CanAccord Genuity, in this case) promises the company (CloudMDthat all the shares they want to issue, will be sold. They do this by purchasing the shares from the company at a discounted price, then reselling them to others for a margin; in this scenario, the financial institution or group assumes all risk for the financing and the company succeeds in their financing. 

The next important facet to look at is the upsizing of the agreement. By increasing the amount of money offered in the bought deal, it signifies increased confidence in the company, by the financial institution. This typically happens when there is increased demand for shares in the company and represents more cash on the balance sheet, for the company. 

With this sale of 13.5M shares, CloudMD now has an additional $32.4M in the bank. They have stated that they intend to pay off any outstanding debt and invest in activities that highly aids them in their path to global growth and expansion. 

CloudMD Acquires the Largest Medical Directory in Canada 

Canadian Medical Directory (CMD) is the largest medical directory in Canada, which contains information on over 100,000 medical professionals ranging from Physicians, Residents and Nurse Practitioners. 

CMD aligns with CloudMD as it is also a SaaS (Software-as-a-Service) company and, currently, has no competitors in the space. CMD has become the gold standard for medical professionals across Canada for the past 65 years.  

The acquisition allows CloudMD to build an extensive database for its clients by providing them with up-to-date information used by a variety of medical clinics, manufacturers, distributors and suppliers. This will also broaden and expand CMD’s client base, which will drive further revenue growth for both brands. 

CloudMD to Acquire Medical Confidence Inc. 

In addition to the CMD acquisition, CloudMD entered into a binding agreement to acquire 100% of Medical Confidence Inc.  

Medical Confidence Inc. is an innovative healthcare navigation platform that is aimed at reducing wait times and increasing patient satisfaction by providing a digital database of publicly available specialists and their respective wait times. With COVID-19 cases increasing worldwide, those with serious, pre-existing mental or physical health conditions are now often waiting weeks or months for appointments with specialists.  

With Medical Confidence Inc., these patients significantly reduce the lead time between booking an appointment and getting in to see a professional. 

The ability to combine health care navigation, access to primary care and mental health support will enable us to support the whole health journey of the patient. The disruptive potential of our process, and technology integrated with CloudMD will accelerate adoption of holistic care plans” 

– Angela Johnson, President of Medical Confidence

CloudMD Acquires Benchmark Systems Inc. and US Chronic Care Clinic 

On October 26thCloudMD announced that they would acquire a majority interest in Benchmark Systems Inc., a leading cloud-based provider of fully integrated solutions that automate healthcare workflow processes.  This includes revenue management, practice management, and electronic records management. This acquisition rounds out CloudMD’s offerings and allows them to become a trusted systems partner for clinics, bolstering their business-to-business services. 

Along with the acquisition of Benchmark SystemsCloudMD also announced that have acquired a Mississippibased Chronic Care Clinic.The company has stated that this is part of its broader strategy for entering the US market with its comprehensive suite of telehealth products and is likely the first of many such acquisitions. 

Disclaimer: We own shares in CloudMD Software, purchased on the open market. 

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  • Juwan Richards

    Juwan's focus is on the intersection of investing and media. Simply defined as a creative with an appreciation for curating content that audiences can both learn from and enjoy. As a buy-and-hold investor, Juwan is a trend-spotter and likes to invest in companies at the ground level. As an avid believer of Web 3.0, his strategy consists of finding companies with a unique competitive advantage and interpreting their market sentiment within the retail audience.

    View all posts

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