Nice PHGI recap from Let me explain why Premier Health Group (PHGI on the CSE or PHGRF on OTC) is one of my largest holdings in the sub dollar healthcare space:
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The healthcare system in Canada is broken beyond reason (One must spend 2 hours during working hours to see a General Physicians
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Physicians are over worked & they want to enjoy their life outside of their clinic
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Physicians spend 5 mins to see patients that don’t have their medical records unless they are their family doctor. Accordingly there is very limited continuation to any patient’s healthcare if they change doctors/cities.
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No digital or virtual care exists in Canada of size & most are fragmented or focused on one city/province
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Rather than focusing on brick & motor like others and try to move to a digital model, Premier is lean & focused on technology provider of healthcare to patients, physicians & the overall healthcare system. They closed Cloud Practice Inc acquisition for CA3M in equity and $2M in cash (payable in installments over the next 6 months). This suddenly gave them access to 2.8 million patients across Canada w access to over 260 clinics including 60 Cannabis clinics https://finance.yahoo.com/news/premier-health-announces-closing-cloud-123000446.html
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With Cloud Practice acquisition they now have access to these patients Chart (medical Record) on a Cloud to which the doctors are already linked & patients can book appointments
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Premier now gets to those clinics to outsource all the back office work (billing, record keeping, appointments..)
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Through an telemedicine app that they will launch by Q219 they will offer all types of services to that pool of patients (2.8M+) & offer doctors the freedom to see their patients from wherever they are. At the same time they can prescribe medications, send them to specialists all on the app. This offering means that rather than acquiring expensive brick & motor clinics Premier Health Group (PHGI) can provide all these services to patients & doctors within their patient ecosystem system for a fee that’s
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As outlined in their most recent PR, Premier now has baseline revenue of 10M dollars that’s cash flow positive https://finance.yahoo.com/news/premier-health-provides-corporate-080500326.html. Premier Health Group revenue & EBITDA growth is massive for example a general practitioner charges Health Canada 45$, 70% goes to the doctor the rest is for the brick & motor (rent, staff..etc) if Premier Health Group (PHGI) offers those clinics the ability to keep 30$ of each visit & rest is virtually via the app then Premier can take upto 15$ a visit with lots of upside on add ons such as scripts, specialists & most importantly the data they would now own.
On average patients do 4 visits per year, so we have 11.2 Million visits. Let’s say they start with a 5% penetration in year one that’s 11,200,000 * 5% * 15$ = 8,400,000$ in additional revenues at 70%+ EBITDA. That combined with their partnership with China's 360 Health, a Subsidiary of 360 Security Technology Inc (20Bn dollar Company) https://finance.yahoo.com/news/premier-health-announces-strategic-partnership-123000284.html , what’s that number like on 1.7Bn population?
10) Add to that Medical Marijuana patients that no doctor is willing to prescribe to. Premier Health Group (PHGI) has the medical experience to do so. Thus any LP that’s serious about increasing patients will need something like this. https://finance.yahoo.com/news/premier-health-announces-partnership-strategy-134500966.html
Why has the stock price been trading in the same range the past 3 months?
PGHI did $3.5 Million dollars raise at 25 cents a share (14.1M shares without any warrant) when none of the formerly mentioned developments were in place, so the stock has been slowly churning through that. However this has been free trading since November so that churn should be less than 5M shares by now. This is a lean Company with all existing assets generating cash flow & insiders own close to 40M of the 61M outstanding so they’re 100% aligned with shareholders.
I will leave it at that for now, but in Healthtech stocks this is an extremely promising/ undervalued Company trading at 4.5X existing revenue (45MCAD) I see as a great candidate to disrupt a very old healthcare system in Canada $PHGI $PHGRF @PremierHealthGI