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CloudMD Software & Services Inc
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Shares Issued 287,745,434
Close 2022-03-03 C$ 0.74
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CloudMD Software forms public sector division

2022-03-03 11:48 ET - News Release

Dr. Essam Hamza reports

CLOUDMD ESTABLISHES PUBLIC SECTOR DIVISION; DRIVES NORTH AMERICAN GROWTH WITH NEW CONTRACT WINS

CloudMD Software & Services Inc.'s has newly formed a public sector division and has provided details on recent customer contracts awarded from various state, local and public sector organizations across North America. These contracts provide meaningful revenue diversification for the company and opportunities to accelerate technology and service integration. The new division will also create cross-selling opportunities to integrate other services and solutions and provides a framework to continue scaling CloudMD's integrated health services platform across North America.

The public sector division combines experience in winning large-scale RFPs (request for proposals) and contracts with an extensive history of successfully servicing public sector organizations across North America. There is growing investment from the public sector aimed at reducing wait lists, improving mental health and wellness, and addressing anxiety, depression, posttraumatic stress and substance use issues. Through technology and efficient use of its health network providers, CloudMD is changing the way health care is delivered to address these issues. The company already has a diverse portfolio of clients within the public sector and this dedicated division is an important driver of CloudMD's organic growth going forward.

Through its interoperability platform, the company signed a contract to provide integration and technology services to the New York City (NYC) Department of Education to support policy, process and governance implementation. The NYC Department of Education is one of the largest educational agencies in the United States with over 1.2 million students.

The company has also been awarded a contract for its substance use disorder (SUD) solution to support the opioid crisis in North Carolina. The SUD solution utilizes CloudMD's patented real-time intervention platform (RTIP), which is expected to be utilized across the country to help government agencies combat the opioid epidemic that is currently sweeping through North America. The SUD solution includes real-time risk identification tools to enable multidisciplinary teams to provide real-time intervention to help individuals with opioid issues get back on track.

In addition, CloudMD's Mental health support solutions service offering confirmed 107 new contracts in January and February, covering up to 50,000 new employees under subscription services. CloudMD has added several contracts within the public sector division, including:

  • Subscription iCBT services for a major college employer in the Atlantic region of Canada;
  • Three new employee and family assistance programs (EFAP) contracts for townships and municipalities across Canada;
  • Mental heath coaching for the employees of a major Ontario university.

CloudMD also continues to receive strong adoption and referrals from the brokers/advisor markets and has a strong pipeline of customers across North America.

"As a lifelong mental health caregiver, I have seen the toll stigma and lack of access to services can take on families. As a long-time public servant, I saw the impact on people, our health care system and our economy. People need supports wherever and whenever they are ready -- at home, at work, at school -- and I am proud to be working with CloudMD and our public sector patient and employer partners across North America to provide effective, holistic and timely care that improves health equity for patients, students, workers and their families," said Colin Andersen, head of the public sector division at CloudMD. "We have already made great progress since establishing our public sector division and integrating MindBeacon into CloudMD's health care offerings. I'm excited about the learnings our experienced U.S. team brings to Canada and vice versa. Our comprehensive platform connects individuals to proven treatment that is outcomes based, readily accessible and ideally positioned to meet the growing health and wellness needs of individuals and organizations alike."

"We are focused on creating shareholder and client value through embedding technology in delivery of health care. This is aligned to our core purpose of creating innovation in access to care and healthcare navigation," commented Karen Adams, president of CloudMD .

"The public sector is recognizing the importance of investing in mental health solutions that will reduce wait times, improve access with a lens on health outcomes. We are fortunate to have the expertise to work with the public sector to solve these problems and deliver an outcome-based ROI [return on investment]."

Dr. Essam Hamza, chief executive officer of CloudMD, added: "As we look forward, I am excited about the future of CloudMD. The combined companies provide incredible depth of expertise, leadership and management that builds the operational structure needed to evolve CloudMD for the next level of growth. Our path to profitability is within sight and we have assembled a leading executive management team that is extremely capable of driving organic growth. Through our ongoing integration efforts, we are well positioned to accelerate our expansion and scale the business."

The new division is led by Mr. Andersen, head of public sector strategy, Robert McKay, director of public sector product development, and Sharad Rao, president of IDYA4, who, together, bring over 70 years collective experience working in government and public sector roles.

Mr. Andersen joins CloudMD's executive team from MindBeacon where he was responsible for MindBeacon's partnerships with all levels of government, postsecondary institutions, public sector employers and workers compensation boards, and all parts of the health care ecosystem. Previously, Mr. Andersen was CEO of the Ontario Power Authority and, prior to that, deputy minister of finance, revenue and policy, cabinet office; acting deputy minister, as well as associate deputy minister of health and long-term care; and secretary of treasury board, all with the Ontario government.

Mr. McKay brings extensive experience in senior roles leading large-scale government projects for the Ministry of Health and Long-Term Care in Ontario, including the provinces psychotherapy program, as well as Cancer Care Ontario's integrated cancer screening program.

Mr. Rao is a senior executive focused on process and technology in the public sector arena with state, city and federal governments in the United States. Notably, he was a senior executive with Deloitte Consulting, leading the justice and public safety segment of the law and justice industry segment for North America. He has overseen several national projects which involved the integration of disparate systems across all 50 states, aggregating data and providing insights to various agencies to take pro-active action.

CloudMD Software & Services also announces that it issued an aggregate of 18,000 common shares to the company's former chief medical officer, Dr. David Ostrow, on Feb. 2, 2022. Dr. Ostrow provided mentoring and advisory services to the company, as initially announced in a news release dated Nov. 19, 2019. The compensation shares were issued as settlement for indebtedness owed to Dr. Ostrow arising from his consulting agreement with the company for the period from Nov. 1, 2020, to Oct. 31, 2021.

The compensation shares have a deemed price of $1.16 per share, which is the discounted market price pursuant to the policies of the TSX Venture Exchange, based on the closing price of the company's common shares on TSX Venture Exchange on Oct. 31, 2021, the last trading day on which Dr. Ostrow's services were provided to the company under the foregoing arrangement. The compensation shares are also subject to a four-month hold period.

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 (AI). CloudMD's business is separated into three main divisions: clinics and pharmacies, digital solution, and enterprise health solutions, the company's fastest-growing division. 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.

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