/THIS NEWS RELEASE IS INTENDED FOR
DISTRIBUTION IN CANADA ONLY AND IS
NOT INTENDED FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
VANCOUVER, BC, Sept. 2, 2020 /CNW/ - CloudMD Software &
Services Inc. (TSXV: DOC) (OTCQB: DOCRF) (Frankfurt: 6PH) (the "Company" or "CloudMD"),
a telemedicine company revolutionizing the delivery of healthcare
to patients, is excited to announce that it has entered into an
amendment (the "Amendment") to the previously announced engagement
agreement with Canaccord Genuity Corp. ("Canaccord") pursuant to
which Canaccord, on behalf of a syndicate of Underwriters (the
"Underwriters"), including Beacon Securities Limited, as co-lead
underwriter and co-bookrunner, have agreed to increase the size of
the previously announced bought deal financing. Pursuant to the
Amendment, the Underwriters have agreed to purchase, on a bought
deal basis pursuant to the filing of a short form prospectus, an
aggregate of 13,100,000 common shares (the "Shares") at a price of
$1.38 per Share (the "Offering
Price") for aggregate gross proceeds to the Company of
approximately $18 million (the
"Offering").
In addition, pursuant to the Amendment, the Company has granted
the Underwriter an option (the "Over-Allotment Option") to purchase
up to an additional 1,965,000 Shares at a price of $1.38 per Share, exercisable at any time, for a
period of 30 days after and including the Closing Date, which would
result in additional proceeds of approximately $2.7 million.
The Shares will be offered by way of a short form prospectus to
be filed in all provinces of Canada except Quebec. The Offering is expected to close on
September 22, 2020 and is subject to
certain conditions including, but not limited to, the receipt of
all necessary regulatory and stock exchange approvals, including
the approval of the TSX Venture Exchange ("TSXV") and the
applicable securities regulatory authorities.
The Company will use best efforts to obtain the necessary
approvals to list the Shares on the TSXV.
CloudMD intends to use the proceeds of the Offering for general
corporate purposes.
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.
ON BEHALF OF THE BOARD OF DIRECTORS
"Dr. Essam Hamza, MD"
Chief Executive Officer
Forward Looking Statements
This news release contains forward-looking statements that are
based on CloudMD's expectations, estimates and projections
regarding its business and the economic environment in which it
operates, including with respect to its business plans. Although
CloudMD believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and involve risks and
uncertainties that are difficult to control or predict. Therefore,
actual outcomes and results may differ materially from those
expressed in these forward-looking statements and readers should
not place undue reliance on such statements. These forward-looking
statements speak only as of the date on which they are made, and
CloudMD undertakes no obligation to update them publicly to reflect
new information or the occurrence of future events or
circumstances, unless otherwise required to do so by law.
The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE CloudMD Software & Services Inc.