CloudMD Closes U.S. Acquisitions of Benchmark Systems Inc. and First U.S Based Chronic Care Clinic - Seite 2

Terms of the Agreement

In consideration for the purchase of 87.5% of the outstanding securities of Benchmark, CloudMD has agreed to pay shareholders aggregate consideration of US$4,375,000 payable in cash, subject to working capital adjustment.

U.S. Chronic Care Clinic Acquisition Close

CloudMD also announces that it has closed the previously announced acquisition to acquire 100% of a U.S. based medical clinic serving chronic care patients as a part of its broader strategy for entering the U.S. market with its comprehensive suite of telehealth products.

The acquisition is an important and strategic part of CloudMD’s cross-border expansion plan into the United States. One of the key goals for CloudMD is to start providing a single comprehensive stop for longitudinal healthcare for chronic and complex care patients in the U.S. These patients often have multiple concurrent diseases such as diabetes, hypertension, vascular and heart disease. The opportunity for expansion with this acquisition is significant, as in the U.S alone, 90% of the $3.5 Trillion spent annually on health care is spent on chronic pain and mental health issues (Source: CDC). CloudMD’s integrated telehealth technology will be used in the clinic practice to provide patient centric, continuity of care.

The clinic is managed by Dr. Fred Roh and Curtis Gibson. Dr. Roh has over 30 years’ experience in the U.S. healthcare market having been founder of Healthcare Networks of America, LLC, a 15,000 member physician organization that provides services to 24 million patients across the U.S. Using CloudMD’s telehealth platform, patient management software and virtual kiosk carts and kits, Dr. Roh will also help with expansion plans to build a network of telehealth powered satellite clinics covering large areas of underserviced areas across the U.S. Curtis Gibson oversees the management of the clinic in Mississippi and will be involved in the expansion of CloudMD services within the southeastern U.S. Mr. Gibson has over 30 years’ experience in investment banking and business development for medical clinics.

Terms of Agreement

In consideration for the purchase of a 100% interest of the U.S. based medical clinic, CloudMD has agreed to a cash payment to the shareholders, along with additional working capital as required.

About CloudMD Software & Services

CloudMD is digitizing the delivery of healthcare by providing a patient centric approach, with an emphasis on continuity of care. The Company offers SAAS based health technology solutions to healthcare providers across North America and has developed proprietary technology that 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 500 clinics, almost 4000 licensed practitioners and 8 million patient charts across North America.