- Telemedicine developer, CloudMD Software & Services (CSE:DOC) has completed its previously announced bought deal financing for gross proceeds of C$14.95 million
- The company issued a total of 21.36 million units at a price of 70 cents each
- The financing was led by Canaccord Genuity and Beacon Securities on behalf of a syndicate of underwriters
- Proceeds raised under the offering will be used to fund merger and acquisition opportunities
- CloudMD Software and Services (DOC) is down 3.8 per cent and is trading at 76 cents per share
Telemedicine developer, CloudMD Software & Services (CSE:DOC) has completed a bought deal financing offer for gross proceeds of C$14.95 million.
The company is focused on digitising healthcare by offering patients access to all points of care from their phone, tablet or desktop computer.
CloudMD currently services a combined network of 376 clinics, more than 3,000 licensed practitioners and almost three million patients.
The financing was led by Canaccord Genuity and Beacon Securities on behalf of a syndicate of underwriters, which included Paradigm Capital and Echelon Wealth Partners.
As such, CloudMD issued a total of 221.36 million units at a price of 70 cents each.
These units are comprised of one common share in the company and one share purchase warrant to acquire an additional share at a price of $1.00, exercisable over a period of 24 months from the date of issuance.
In addition, CloudMD issued a total of 1.49 million broker warrants to the underwriters of the financing as consideration for their services. These warrants are also exercisable at a price of $1.00 for a period of 24 months.
The company intends to use the proceeds raised under the financing to fund future merger and acquisition opportunities, as well as for general working capital purposes.
Essam Hamza, CEO of CloudMD, commented on the offer and the company’s upcoming plans.
“Closing this financing is a very important inflection point for the company and we thank our syndicate for their diligent efforts and welcome our new shareholders.
“We are excited to further execute on our growth strategy and this injection of capital will accelerate our M&A efforts,” he said.
Separately, CloudMD has received conditional approval from the Toronto Stock Exchange to move its listing from the Canadian Securities Exchange to the TSX Venture Exchange.
Final approval remains subject to the satisfaction of certain customary conditions, after which the company’s common shares will trade on the TSXV under the ticker code DOC.
CloudMD Software & Services (DOC) is down 3.8 per cent and is trading at 76 cents per share at 11:01am EDT.