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CloudMD Software & Services Inc V.DOC

Alternate Symbol(s):  DOCRF

CloudMD Software & Services Inc. is a healthcare service provider. The Company operates through two divisions: Health and Wellness Services (HWS) and Health and Productivity Solutions (HPS). HWS operates through two models: subscription-based pricing using a price per member per month with an average contractual term of three years; and a per-case billing model at an agreed-upon rate for services that are used in disability management, occupational health, and other employer services. HPS division offers health and productivity tools intended to create a better experience for those needing healthcare. The Company’s workplace health and wellbeing solution, Kii, supports members and their families with a personalized and connected healthcare experience across mental, physical and occupational health. Kii delivers superior clinical health outcomes, consistent high engagement, and measurable ROI for payers such as employers, educational institutions, associations, governments and insurers.


TSXV:DOC - Post by User

Comment by olive15on Jul 16, 2020 11:28am
175 Views
Post# 31276023

RE:Snapclarity.

RE:Snapclarity.Good question, Polek1. Reading the press release, my takeaway is (1) market is not impressed with acquisition given no material increase in volume or price; (2) DOC is using their shares as currency with about 2/3 of purchase price being paid through share issuance thus diluting shareholder equity; (3) "shares subject to two year release" ... can anyone provide clarity here? Does this mean shares are locked up for 2 years? Shares will be released periodically during the 2 year period?Of course this matters as nearly 3.4m free trading shares will have a negative sp impact unless share demand picks up; (4) "Snapclarity may earn an additional 3.65m in equity based consideration" ... more vagueness from the company as they don't say how this may be earned or when; and of course this further dilutes shareholder equity. Companies issue shares, and are willing to dilute equity only when they don't have enough cash, choose not to take on debt or know that market will not buy a debt issuance, and do not place current shareholders first.
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