In a news release, telemedicine company CloudMD Software & Services Inc. (DOC:TSX.V; DOCRF:OTCQB; 6PH:FSE) announced that "it has signed a Share Purchase Agreement to acquire South Surrey Medical Inc., an integrated medical clinic based in Metro Vancouver, B.C." The firm noted that it previously advised that it signed a Binding Term Sheet to acquire 100% of the business, assets and operations of South Surrey on June 11, 2020.
CloudMD explained that South Surrey has been an early adopter of telemedicine delivery and is a premier provider of integrated medical solutions. The clinic serves over 60,000 patients and employs 24 healthcare staff members including 12 physicians in several different areas of specialization including mental health, psychiatry, sports medicine, gynecology and women's health. The company noted that since South Surrey is presently utilizing online booking, EMR software and telemedicine it can be easily merged into its software and clinic network.
CloudMD stated that under the terms of agreement, it will purchase 100% of the outstanding securities of the medical clinic and that "it has agreed to pay Shareholders (pro-rata) aggregate consideration of up to CA$700,000, payable as up to CA$200,000 in cash and up to CA$500,000 in shares of the company." The firm added that a portion of the purchase price is subject to achievement of certain performance conditions and a customary working capital adjustment. The company expects that the transaction will close on or before July 31, 2020, and is subject to customary closing conditions and TSX Venture exchange approval.
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