Telehealth opportunities have become even more explosive. For one, President Trump just signed an executive order to expand telehealth in rural areas. “Telehealth use has skyrocketed during the pandemic thanks to the President’s actions, and the telehealth revolution is here to stay. The new gold standard for healthcare will be patients and providers deciding on the right blend of in-person and virtual care, when and where it makes sense for them. The President is now directing HHS to keep charging ahead on giving Americans better access to the doctors of their choice, including via telehealth.,” said Health and Human Services Secretary Alex Azar. And two, we’re seeing more industry consolidation. Teladoc Health just announced it will acquire Livongo Health in a deal valued at $18.5 billion.
Three, more people are embracing telehealth. In fact, according to a recent survey from healthinsurance.com, more than 60% of Medicare-eligible seniors say they’re now using the technology. As telehealth becomes far more popular, some of the top companies that could benefit include CloudMD Software & Services Inc. (TSXV:DOC) (OTCQB:DOCRF), Teladoc Health Inc. (NYSE:TDOC), 1Life Healthcare Inc. (NASDAQ:ONEM), Zoom Video Communications Inc. (NASDAQ:ZM), and UnitedHealth Group Inc. (NYSE:UNH).
CloudMD Software & Services Inc. (TSXV:DOC)(OTCQB:DOCRF) BREAKING NEWS: CloudMD Software & Services Inc., a telemedicine company revolutionizing the delivery of healthcare to patients, announces today that is has entered into a Share Purchase Agreement to acquire a majority interest West Mississauga Medical Ltd. (“West Mississauga Medical”), a comprehensive family medicine and specialist medical clinic with 8 family doctors and 4 specialists serving over 100,000 patients. As previously announced, on June 16, 2020, the Company entered into a binding term sheet with West Mississauga Medical to acquire 51% of the business, assets and operations.
West Mississauga Medical is a well-established medical clinic that has served its community for over 16 years and remained open throughout the COVID-19 pandemic seeing patients via telemedicine and in-person. The clinic will be integrated into the CloudMD EMR platform and its network of doctors and specialists will immediately start servicing CloudMD’s registered users and patients in Ontario.
The acquisition will be immediately accretive to CloudMD as West Mississauga Medical generated more than $1.8 million in revenues with earnings before interest, taxes, depreciation, and amortization (EBITDA) margins exceeding 11% over the last fiscal year ending December 2019. The acquisition is part of CloudMD’s national growth strategy which includes having well established brick and mortar clinic partners in major provinces. These clinics ultimately provide a strong, centralized patient base and footprint across the country.
Terms of Agreement -- In consideration for the purchase of 51% of the outstanding securities of West Mississauga Medical, CloudMD has agreed to pay Shareholders aggregate consideration of C$200,000 payable as up to C$140,000 in cash and C$60,000 in shares of the Company. All shares issued pursuant to the acquisition are issued at a deemed price of $0.81 per share and are priced by calculating the ten-day volume weighted trading price of the Company shares for the 10 trading days prior to the execution of the definitive agreement.
The acquisition is also considered to be a “related party transaction” as defined under Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued nor the consideration being paid exceeds 25% of the Issuer’s market capitalization. The acquisition is subject to customary closing conditions, including receipt of TSX Venture Exchange approval.
Other related developments from around the markets include:
Teladoc Health Inc. (NYSE:TDOC), the global leader in virtual care, and Livongo (LVGO), the leading Applied Health Signals company – announced that they have entered into a definitive merger agreement. This merger represents a transformational opportunity to improve the delivery, access and experience of healthcare for consumers around the world. The highly complementary organizations will combine to create substantial value across the healthcare ecosystem, enabling clients everywhere to offer high quality, personalized, technology-enabled longitudinal care that improves outcomes and lowers costs across the full spectrum of health. Under the terms of the agreement, which has been unanimously approved by the Board of Directors of each company, each share of Livongo will be exchanged for 0.5920x shares of Teladoc Health plus cash consideration of $11.33 for each Livongo share, representing a value of $18.5 billion based on the closing price of Teladoc Health shares as of August 4, 2020. Upon completion of the merger, existing Teladoc Health shareholders will own approximately 58 percent and existing Livongo shareholders will own approximately 42 percent of the combined company.
1Life Healthcare Inc. (NASDAQ:ONEM), a leading national digital health and primary care organization, announced One Medical Now, a virtual-only offering for companies. Rolled out this past quarter, One Medical Now has seen strong interest from national employers looking to provide the One Medical service experience to employees in markets where One Medical doesn’t currently offer a physical presence. One Medical Now continues One Medical’s distinctive approach to synchronous and asynchronous virtual care bundled as part of an enterprise solution. One Medical Now builds upon One Medical’s proprietary technology platform and salaried provider model, to deliver outstanding service and value-based care to employers. Through this offering, One Medical is further broadening its footprint, expanding reach within existing employer accounts, and building relationships with new national employer clients.
Zoom Video Communications Inc. (NASDAQ:ZM) will release results for its second quarter of fiscal year 2021 on Monday, August 31, 2020, after the market closes. A live Zoom Video Webinar of the event can be accessed at 2:30 pm PT / 5:30 pm ET through Zoom’s investor relations website at https://investors.zoom.us. A replay will be available approximately two hours after the conclusion of the live event and remain up for approximately one week.
UnitedHealth Group Inc. (NYSE:UNH) board of directors has authorized payment of a cash dividend of $1.25 per share, to be paid on September 22, 2020, to all shareholders of record of UnitedHealth Group common stock as of the close of business on September 14, 2020.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. CloudMD Software & Services Inc. has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of CloudMD Software & Services Inc. Please click here for full disclaimer.
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