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Digital Health Firm Signs Deal to Acquire Vancouver Medical Clinic Serving 60,000 Patients
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CloudMD reported it entered into a definitive agreement to acquire South Surrey Medical Clinic in Metro Vancouver in a combination stock and cash deal valued at CA$700,000.

In a news release, telemedicine company CloudMD Software & Services Inc. (DOC:TSX.V; DOCRF:OTCQB; 6PH:FSE) announced that "it has signed a Share Purchase Agreement to acquire South Surrey Medical Inc., an integrated medical clinic based in Metro Vancouver, B.C." The firm noted that it previously advised that it signed a Binding Term Sheet to acquire 100% of the business, assets and operations of South Surrey on June 11, 2020.

CloudMD explained that South Surrey has been an early adopter of telemedicine delivery and is a premier provider of integrated medical solutions. The clinic serves over 60,000 patients and employs 24 healthcare staff members including 12 physicians in several different areas of specialization including mental health, psychiatry, sports medicine, gynecology and women's health. The company noted that since South Surrey is presently utilizing online booking, EMR software and telemedicine it can be easily merged into its software and clinic network.

CloudMD stated that under the terms of agreement, it will purchase 100% of the outstanding securities of the medical clinic and that "it has agreed to pay Shareholders (pro-rata) aggregate consideration of up to CA$700,000, payable as up to CA$200,000 in cash and up to CA$500,000 in shares of the company." The firm added that a portion of the purchase price is subject to achievement of certain performance conditions and a customary working capital adjustment. The company expects that the transaction will close on or before July 31, 2020, and is subject to customary closing conditions and TSX Venture exchange approval.


1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of CloudMD Software & Services Inc., a company mentioned in this article.
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