Vancouver healthcare service provider CloudMD has entered into an agreement to be taken private by Toronto-based private equity firm CPS Capital.
The transaction is the culmination of a strategic and liquidity review that commenced last summer.
CloudMD is focused on empowering healthier living by combining leading edge technology with an exceptional national network of healthcare professionals.
CloudMD’s workplace health and wellbeing solution, Kii, supports members and their families with a personalized and connected healthcare experience across mental, physical and occupation health.
In addition, the Company sells health and productivity tools to hospitals, clinics, and other healthcare service providers to empower them to deliver better care.
Although CloudMD’s management was able to deliver on organic growth targets and strengthen the balance sheet while creating an ecosystem of care, the company’s forecasted liquidity issues impacted their ability to remain a going concern.
“We are happy to receive the support of CPS Capital, which will provide us with the ability to execute on our long-term plan, accelerate growth, and move forward on a strong financial footing,” commented Karen Adams, Chief Executive Officer of CloudMD.
“The Transaction will provide the Company with much-needed capital to execute on future initiatives to sustain and grow the business. The healthcare sector has large demand for outcome-based service providers who have the ecosystem of services.”
The transaction will see CPS acquire all of CloudMD’s outstanding common shares for $0.04 each, valuing the transaction at around $12 million. Following completion of the transaction, the CloudMD’s shares will be delisted from the TSX Venture Exchange.
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