CloudMD to Acquire the Largest Medical Directory in Canada with Robust, Up-to-Date, Information on 91,000 Practicing Physicians and 10,000 Residents and Nurse Practitioners - Seite 3

Hugh Owen, CEO of Owen Media commented, “We are excited to work closely with Essam and the entire CloudMD team. Pairing the Canadian Medical Directory with CloudMD was a natural fit, placing one of Canada’s most trusted medical brands into the heart of the telehealth revolution. Using the directory, CloudMD will be able to bring its own message to more doctors, clinics and hospitals as well as drive growth into CMD’s traditional SaaS information business. We can’t wait to get started!”

Terms of Agreement

In consideration for the purchase of 100% of the assets and business of CMD, CloudMD has agreed to pay aggregate consideration of $1.95 million payable as follows: (i) $250,000 in cash; (ii) $1.35 million in shares of the Company; and (iii) a performance-based earnout of $350,000, which is payable in shares of the Company in annual issuances over a period of two years. All shares issued pursuant to the acquisition are issued at a deemed price of $2.35 per share and are priced by calculating the 10-day volume-weighted average trading price of the Company's shares for the 10 trading days prior to the execution of the binding term sheet. The shares will be subject to certain contractual restrictions on trading for a period of 16 months from the date of issuance.

The company also announces the granting of stock options to purchase an aggregate of 400,000 common shares of the Company at an exercise price of $2.40 per share for a five-year term.  The stock options were granted pursuant to the Company’s Stock Option Plan and the policies of the TSX Venture Exchange, to an officer of the Company.

About CloudMD Software & Services

CloudMD is digitizing the delivery of healthcare by providing patients access to all points of their care from their phone, tablet or desktop computer. The Company offers SAAS based health technology solutions to medical clinics across Canada and has developed proprietary technology that delivers quality healthcare through the combination of connected primary care clinics, telemedicine, and artificial intelligence (AI). CloudMD currently provides service to a combined ecosystem of 376 clinics, over 3000 licensed practitioners and almost 3 million patient charts across its servers.