12:15:44 EDT Fri 02 Jun 2023
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CloudMD Software & Services Inc
Symbol DOC
Shares Issued 287,625,749
Close 2022-01-21 C$ 0.81
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CloudMD's VisionPros hit with claims from suppliers

2022-01-24 11:03 ET - News Release

Dr. Essam Hamza reports


CloudMD Software & Services Inc. has provided an update on its subsidiary, VisionPros, which was acquired on June 23, 2021. The company has been advised of claims from certain suppliers to VisionPros for the repayment of rebates and reassessments for approximately $3.73-million. The claims arise from violations of existing distribution agreements VisionPros has with these suppliers and are in relation to the business conducted by VisionPros prior to its acquisition by CloudMD. The company has strong relationships with these suppliers and is working co-operatively with them to assess the claims and to negotiate the terms of new distribution agreements.

CloudMD's board of directors has authorized the audit committee to conduct a comprehensive review of the claims and the business of VisionPros. In connection with that review, the audit committee will consider, among other things, the amount of goodwill for this acquisition that will be reflected in the company's annual financial statements for the year ended Dec. 31, 2021.

The audit committee will also review and assess the avenues available to the company for recovery against the former owners of VisionPros in connection with the claims, which would be in addition to the indemnification holdback of 1,090,909 shares and $3-million of cash as provided in the definitive agreement for the acquisition.

The audit committee has commenced its review and the company will make further announcements as appropriate.

About CloudMD Software & Services Inc.

CloudMD is transforming the delivery of health care using technology and 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, health care navigation, educational resources and artificial intelligence. CloudMD's Enterprise Health Solutions division has built a leading employer health care solution, including its comprehensive integrated health services platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers and advisers to better manage the health and wellness of their students, employees and customers.

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 five million individuals across North America.

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