Cloudmd Software And Services Inc - DOCRF stock
Go-Private Transaction[edit]
In June, 2024, CloudMD Software & Services Inc. announced that its securityholders approved a plan of arrangement for CPS Capital to acquire all outstanding common shares of CloudMD. Shareholders at a price of C$0.04 in cash per share. The special resolution was approved with significant support, including 69.68% of votes from shareholders and 70.27% of votes from shareholders and option holders combined.[1] Shares of CloudMD ceased trading on the TSX Venture exchange on July 9, 2024.[2]
Introduction to DOCRF[edit]
CloudMD Software & Services Inc. (OTC: DOCRF, TSXV: DOC) is a North American healthcare technology company specializing in personalized healthcare service delivery. The company blends technology with its national web of healthcare professionals to provide exclusive services to its target market. It operates a custom-designed proprietary technology that connects healthcare professionals, patients, and educational resources in a central ecosystem, increasing accessibility and quality of life. The firm operates through the Digital Solutions and Enterprise Health Solution segments. The digital solutions, advanced on subscription, are sold to clinics, insurers, pharmacies, and companies who, in the end, use them to upgrade connectivity and improve the client, health practitioner, and user experience. Enterprise Health Solutions incorporates a Comprehensive Integrated Health Services Platform, which offers a quality digitally connected platform for better health and wellness management of an institution’s constituents by the associated institution.[3] The firm was initially named Premier Health Group Inc. before renaming it in February 2020 to CloudMD Software & Services Inc. It was formed in 2013 and is headquartered in Vancouver, Canada. CloudMD’s stocks are listed on the TSX Venture under the DOC symbol and on OTC markets under the DOCRF ticker.[4]
CloudMD Business Operations[edit]
CloudMD delivers on-the-clock healthcare services, facilitated by a chain of healthcare professionals working round the clock to serve customers on their care plans. Its technology provides an integrated experience and efficient access to a subscriber's information to the individual and their care providers. The firm has designed its products and services to be scalable. It creates room for effortless expansion via its platform, allowing for the rapid, cost-effective introduction of new services to prospective customers and new geographical locations. It heavily invests in technology to propel care access through telephonic, in-person, online, and virtual media. Its innovative care delivery is focused on ‘Kii,' a centralized program that incorporates in-person, phone, and digital care pathways that allow employees access criteria to the range of services offered. Numerous individuals use Kii services, employers, disability case managers, property and casualty insurers, life and health insurers, etcetera. The program is offered either as per case fee or employee subscription. Enterprise Health Solutions (EHS) and Digital Health Solutions (DHS) are the company’s main revenue-generating divisions.
The EHS segment provides organizations with a range of services under one program, including Employee & Family Assistance Plan (EFAP), Independent Medicals, Telemedicine, Mental Health Coaching, Treatment, Occupational Health, and Absence Management. CloudMD employs a go-to-market strategy, which incorporates direct sales to large institutions and strong sales-leveraged relationships with insurance advisors, brokers, and large group benefit insurers. As of November 14, 2022, the company served over 7,200 customers. The firm believes that the technology-enabled program provides employers with a centralized, cost-effective, time-saving solution to addressing the comprehensive healthcare needs of their employees and eliminating multiple-vendor sourcing. DHS solutions are offered on a subscription or license-to-use basis to insurers, companies, clinics, and pharmacies who use the technology to create connectivity and improve the client, health practitioner, and user experience while increasing business efficiency. As of November 14, 2022, ClodMD served a natural ecosystem of over 5,700 clinicians, over 1,400 doctors and nurses, and over 1,600 allied health professionals, and it covers 12 million individual lives distributed across North America.[5]
Acquisitions[edit]
On January 14, 2022, ClodMD completed the strategic acquisition of f MindBeacon Holdings Inc., an established digital mental healthcare provider focused on internet-based cognitive behavioral therapy (iCBT). iCBT is a fast-growing, highly effective therapy accessible through a computer or a mobile phone and is preferred by most customers to typical in-person therapy. It is cost-effective, stigma-reducing, and blends well with CloudMD’s personalized, integrated offering. The acquisition was projected to expand CloudMD’s footprint in the U.S. via improved cross-selling synergies and behavioral healthcare services to employer populations.[6]
Critical Corporate Updates[edit]
On December 19, 2022, the company announced that it had successfully closed the pre-announced divestiture of its pharmacies based in British Columbia to Neighbourly Pharmacy Inc. for roughly $3.8 million. The firm had wrapped up the sale of primary clinics, the two transactions yielding over $9.0 million in non-dilutive capital. Karen Adams, the company’s CEO, added that CloudMD’s divestiture strategy provides it with increased flexibility for long-term growth and that funds accumulated from the sales would be utilized to increase profitability and expand organic growth.[7]
On November 15, 2022, the firm reported its third-quarter results for the period ending September 30, 2022. Highlights of the company’s performance include:
- The company recorded $27.5 million in revenue from continuing operations, a drop from $28.9 million in Q3 2021. The quarter revenue excluded revenue from Clinics & Pharmacies division and Cloud Practice, considered as discounting operations, which generated approximately $10.7 million
- The gross profit margin was 34.5% versus 36.1% in the same quarter of 2021
- Net loss attributed to equity holders was $94.8 million or $0.32 per share, versus a $5.8 million loss or $0.02 per share in Q3 2021, propelled by an $84 million goodwill impairment
- Adjusted EBITDA was negative $3.0 million, versus $0.9 million in Q3 2021
- Incurred an $83.9 million non-cash accounting impairment charge in the quarter.[8]
Governance[edit]
With over 100 years of combined experience, CoudMD’s management comprises professionals who deeply understand the repercussions of a fractured healthcare delivery system. The team is committed to increasing access to quality care.
Executive Management[edit]
Karen Adams, President, and CEO, Global Head, Enterprise Health Solutions
- Commands over 20 years of senior executive experience, creating value through innovation, process, people, and technology
- Has massive expertise in mental and physical healthcare evolution, creating positive results for employees, employers, advisors, insurers, and consumers
- He has served in senior positions for established companies, including Morneau Shepell and Shepell.FGI, SCM Insurance, and Snapclarity
- She is also the past chair of the Ontario Shores Centre for mental health foundation
John Plunkett, CPA, CA, Chief Financial Officer
- Has 15 years of experience in financial management
- His expertise is stretched through financial planning, business integrations, mergers and acquisitions, corporate accounting, and controllership
- Before joining CloudMD, he was MindBeacon’s CFO, where he oversaw the company’s 2020 IPO and its acquisition deal with CloudMD
- He also reinforced his leadership career with several publicly-traded companies before MindBeacon, including LifeWorks and D+H, KPMG LLP, and Ernst & Young LLP, in audit
- He is a C.A., CPA, and has an undergraduate business degree from Ivey Business School at the University of Western Ontario
Additional executive members include Adam Kelly, Executive Vice President, and Chief Commercial Officer; Dr. Lu Barbuto, Executive Vice President, CloudMD & President, EHS; Aida Begovic, Executive Vice President, Product; Melissa Alvares, Senior Vice President, Marketing, and Nathan Lane, MBA, General Manager, Digital Health Solutions.[9]
- ↑ GlobeNewswire. CloudMD Securityholders Approve Go-Private Transaction with CPS Capital. June 27, 2024.
- ↑ GlobeNewswire. CloudMD Completes Go-Private Transaction with CPS Capital. July 9, 2024.
- ↑ Company Details – cnbc.com/quotes/DOCRF?tab=profile. Accessed on February 9, 2023.
- ↑ CloudMD Software & Services Inc. Company Profile – Seeking Alpha. Retrieved on February 9, 2023.
- ↑ CloudMD Software & Services Inc. Management’s Discussion and Analysis for the three and nine months ended September 30, 2022, and 2021, pages 6, 7, & 8 – LoudMD website. November 14, 2022.
- ↑ CloudMD Announces Closing of MindBeacon Acquisition, Creating One of North America’s Most Comprehensive Integrated Health Offerings – CloudMD News. January 14, 2022.
- ↑ CloudMD Closes Divestment of Pharmacies to Neighbourly Pharmacy – Yahoo Finance News. December 19, 2022.
- ↑ CloudMD Reports Third Quarter 2022 Financial Performance – Yahoo Finance. November 15, 2022.
- ↑ Governance – Executive Management – CloudMD website. Retrieved on February 10, 2023.
OTC Symbol: DOCRF | OTC Tier: OTCQX International
