CloudMD Software & Services Inc V.DOC

Ink Research

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21 July 2020

Morning Report: Will CloudMD stock recover from its recent fall?

Canada's morning overview of insider filings with a special focus on companies that may interest active and momentum-oriented investors.

CloudMD Software & Services (DOC) is a telemedicine company that provides software-as-a-service (SAAS) based health technology solutions allowing patients access to care from their phones, tablets, or desktop computers. CloudMD serves an ecosystem of 315 clinics with more than 3,000 practitioners and nearly 3 million registered patients. The stock fits in with the third investment theme from our weekly market reports of offering COVID-19 solutions in areas such as care, therapeutics, testing, and vaccines.

CloudMD caught the attention of investors in March as the pandemic hit North America, setting a 52-week high of 95 cents on May 5th. However, it has pulled back following an early June $14.95 million bought deal unit financing priced at 70 cents (each unit included a share and half a warrant with an exercise price of $1.00 for 24 months). CloudMD has already put some of that cash to work to grow its clinics and pharmacies network segment. On June 16th, CloudMD announced that it had agreed to acquire 51% of West Mississauga Medical, a family medicine and specialist medical clinic with 8 family doctors and 4 specialists serving over 100,000 patients. Later, on July 16th, CloudMD announced that it had agreed to acquire 100% of Snapclarity Inc., an on-demand digital platform provider for the care of mild, moderate, and chronic mental health issues. According to the company, the deal makes CloudMD the first and only telemedicine solution that integrates physical and mental health care into one digital platform. Meanwhile, the company chairman has been buying, betting that the stock will offer investors healthy returns in the future.

From June 8th to July 16th, CloudMD Software & Services (DOC) Chairman of the Board Mark Kohler (XCAP, VPY, CRYS) bought a total of 62,000 common shares on a direct ownership basis at an average price of $0.67. Mr. Kohler is the third-largest insider equity holder at the company with 0.25% of shares outstanding.

CloudMD Software & Services has above median ownership (direct & indirect holdings) by Officers and Directors compared to other small-cap stocks in the Healthcare sector according to SEDI filings as of July 20th, 2020.