Dr. Essam Hamza reports

CLOUDMD CLOSES ACQUISITION OF ASPIRIA, AND LAUNCHES FOCUSED MENTAL HEALTH SUPPORT SOLUTION IN NORTH AMERICA FOR EMPLOYERS AND STUDENTS

CloudMD Software & Services Inc. has closed the previously announced acquisition of Aspiria Corp., a company that provides an integrated employee (EAP) and student assistance program (SAP), that focuses on a comprehensive suite of mental health and wellness solutions for all employer and educational sectors. Aspiria currently serves over 750 organizations, with one million employees, students and their families in Canada and internationally.

With the acquisition of Aspiria, CloudMD now has the fourth-largest EAP platform in Canada, with a combined network of over 7,500 psychologists and psychotherapists covering over three million lives. The addition of Aspiria to CloudMD's EHS division is immediately synergistic and will contribute to the division's healthy gross margins and an organic growth rate of over 20 per cent. CloudMD continues to expand its footprint into specialized segments, scale its operations, and drive revenue and profitable growth across its EHS division.

With the addition of Aspiria, the company has launched a focused mental health solution that ensures employees and students receive access to traditional EAP services as well as virtual access to multidisciplinary services such as iCBT, women's mental health, oncology support as well as other solutions tailored to mild, moderate and chronic mental health issues. The integrated mental health solution combines HumanaCare, Aspiria and Snapclarity, and provides students and employees across North America access to the digital mental health platform to support all mental health issues. The platform includes a suite of digital tools, combined with a traditional short-term counselling model designed by clinicians and grounded in evidence-based practices that are proven to positively impact outcomes. Individuals have access to assessment and triage, navigation and care via web, mobile chat/text and telephone. Chronic mental health will be assessed and triaged to the appropriate care optimizing group benefit programs and improving outcomes.

As part of the combined mental health support solution, employees, students and members have immediate access to a market-leading iCBT program. When combined with CloudMD's other mental health support services, and as part of a streamlined EAP experience, iCBT provides additional opportunities for virtual service delivery to deliver the best possible mental well-being outcomes to individuals.

The company continues to focus on the integration of all its health care technology solutions to provide a connected health care ecosystem that addresses all points of a patient health care journey. Leveraging its real time intervention platform (RTIP), the company will continue rolling out programs like the mental health support solution and the substance-use disorder program across North America to help mitigate the growing mental health crisis.

Karen Adams, chief health innovation officer and global head of enterprise health solutions, commented: "We are very excited to close the acquisition of Aspiria and welcome the team to our EHS division. The addition of Aspiria enables us to support employers with the launch of our integrated mental health support solution, providing individuals access to important assessment and triage to navigate their mental health issues with the right treatment plan. Rising mental health issues in the workplace requires an expansion of what employers currently understand as EAP which includes more assessments, comprehensive treatment plans and progressive measurement empowering people to get the help they need and in turn reduce casual absenteeism and disability within organizations."

Terms of acquisition

In consideration for the purchase of 100 per cent of the outstanding securities of Aspiria, CloudMD has paid shareholders of Aspiria aggregate consideration of $3-million payable as follows: (i) $1.2-million in cash, subject to a working capital adjustment; (ii) $1.05-million in common shares of the company; and (iii) a performance-based earn out of $750,000, which is payable in common shares of the company after a period of one year. All common shares issued pursuant to the acquisition will be issued at a deemed price of $2.28 per common share. For full terms see press release dated Jan. 18, 2021.

About CloudMD Software & Services Inc.

CloudMD is digitizing the delivery of health care by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging health care technology, the company is building one connected platform that addresses all points of a patient's health care journey and provides better access to care and improved outcomes. Through CloudMD's proprietary technology, the company delivers quality health care through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, educational resources and artificial intelligence. CloudMD currently services a combined ecosystem of over 7,000 psychiatrists, approximately 4,500 therapists and counsellors, approximately 4,000 psychologists, over 22,000 family physicians, over 34,000 medical specialists, over 1,500 allied health professionals, over 500 clinics and over three million individuals across North America. CloudMD's Enterprise Health Solutions division includes one of the top four employee assistance programs in Canada and offers one comprehensive, digitally connected platform for corporations, insurers and advisers to better manage the health and wellness of their employees and customers.

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