- CloudMD (DOC) has signed a binding term sheet to acquire 100 per cent of mental healthcare platform Snapclarity
- The company intends to integrate Snapclarity’s digital mental healthcare plan into its own virtual care solutions platform
- CloudMD will pay up to C$975,000 in cash and up to $2,375,000 in company shares for the acquisition of Snapclarity
- Mental healthcare is especially necessary right now, as the COVID-19 pandemic exacerbates a pre-existing mental health crisis
- CloudMD (DOC) is down 1.56 per cent and is currently trading at 63 cents per share
CloudMD (DOC) has signed a binding term sheet to acquire 100 per cent of mental healthcare platform Snapclarity.
Snapclarity’s digital platform for mental healthcare can assess an individual’s risk of mental health disorders. As such, it can create a personalised care plan, and provide access to online resources and a clinical healthcare team.
CloudMD intends to integrate Snapclarity’s healthcare plan into its own virtual care solutions platform. The two companies hope that by combining forces, they will be able to meet all facets of telehealth and telemedicine.
CloudMD will pay a total consideration of approximately C$3.35 million for the acquisition of Snapclarity. This will consist of up to $975,000 in cash and $2,375,000 in shares in the company, at $0.70 per share.
Snapclarity may also earn an additional $3.65 million in equity-based consideration, if it achieves certain performance targets in 2021 and 2022.
The need for mental healthcare is especially high right now, due to the ongoing COVID-19 pandemic. If the virus weren’t stressful enough on its own, it has exacerbated a pre-existing global mental health crisis that has largely gone ignored.
CloudMD’s CEO, Essam Hamza, commented on the heightened necessity for mental healthcare in the midst of COVID-19.
“The COVID-19 pandemic is the most serious public health emergency of our lifetime, and it has further deepened the mental health crisis we were already facing.
“Recent data tells us that over 56 per cent of Canadians said the pandemic is having a negative impact on their mental health, with social isolation being the top contributing factor.
“This acquisition of Snapclarity is a transformational addition to CloudMD, as we continue to strengthen our suite of virtual care solutions and make it easier for Canadians to get help from home,” he said.
CloudMD (DOC) is down 1.56 per cent and is currently trading at 63 cents per share at 2:17pm EDT.
