CloudMD (OTC: DOCRF) Announces Closing of $20.79 Million Oversubscribed Bought Deal Financing

TORONTO, Sept. 22, 2020  — CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a telemedicine company seeking to revolutionize the delivery of healthcare to patients, is pleased to announce that it has closed its previously announced short form prospectus offering, on a bought deal basis (the “Offering“), including the full exercise of the underwriters’ over-allotment option.

Pursuant to the Offering, the Company issued a total of 15,065,000 common shares (the “Shares”) at a price of $1.38 per Share for aggregate gross proceeds of $20,789,700. The Offering was led by Canaccord Genuity Corp. and Beacon Securities Limited on behalf of a syndicate of underwriters including Echelon Wealth Partners Inc. and Mackie Research Capital Corporation (collectively, the “Underwriters“). The Company issued the Underwriters an aggregate of 1,054,550 broker warrants (the “Broker Warrants”). Each Broker Warrant is exercisable to acquire one common share of the Company at the exercise price of $1.38 per common share for a period of 24 months from the closing date of the Offering.

Essam Hamza, CEO of CloudMD commented, “Closing this financing is a very important inflection point for the Company as we continue our North American and global expansion plans. The capital raised from this bought deal allows us to continue making accretive acquisitions synergistic to our vision of providing whole person, continuity of care, while adding immediate value for our shareholders. We would like to thank our syndicate for their diligent efforts and welcome our new shareholders. We are excited to further execute on our growth strategy and this injection of capital will accelerate our M&A growth efforts.

CloudMD intends to use the proceeds of the Offering for strategic M&A activities and general corporate purposes.

About CloudMD Software & Services

CloudMD is digitizing the delivery of healthcare by providing patients access to all points of their care from their phone, tablet or desktop computer. The Company offers SAAS based health technology solutions to medical clinics across Canada and has developed proprietary technology that delivers quality healthcare through the combination of connected primary care clinics, telemedicine, and artificial intelligence (AI). CloudMD currently provides service to a combined ecosystem of 376 clinics, over 3000 licensed practitioners and almost 3 million patient charts across its servers.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws, and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

ON BEHALF OF THE BOARD OF DIRECTORS

“Dr. Essam Hamza, MD”
Chief Executive Officer