CloudMD Software and Services Inc. (DOCRF)

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CloudMD Increases Previously Announced Bought Deal Public Offering to $55 Million.

source
https://finance.yahoo.com/news/trez-capital-senior-mortgage-investment-010000207.html

Wed, February 17, 2021, 4:50 PM

CloudMD Software & Services Inc. (TSXV: DOC) (OTCQB: DOCRF), a telemedicine company revolutionizing the delivery of healthcare to patients, is excited to announce that it has entered into an amendment (the "Amendment") to the previously announced engagement agreement with Canaccord Genuity Corp. Beacon Securities Limited and Echelon Wealth Partners Inc., on behalf of a syndicate of Underwriters. The Underwriters have agreed to increase the size of the previously announced bought deal financing. Pursuant to the Amendment, the Underwriters have agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 20,400,000 common shares at a price of $2.70 per Share for aggregate gross proceeds of approximately $55 million. Of the aggregate 20,400,000 Shares being offered, 18,500,000 Shares will be issued from treasury by CloudMD for gross proceeds of approximately $50 million to the Company, and an aggregate of 1,900,000 Shares will be offered by Essam Hamza and Kanchan Thindal for aggregate gross proceeds to the Selling Shareholders of $5,130,000.

The Company has granted the Underwriter an option to purchase up to an additional 3,060,000 Shares at a price of $2.70 per Share, exercisable at any time, for a period of 30 days after and including the Closing Date, which would result in additional proceeds of $8.3 million.

The Shares will be offered by way of a short form prospectus to be filed in all provinces of Canada except Quebec. The Offering is expected to close on March 9, 2021 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange ("TSXV") and the applicable securities regulatory authorities.

The Company will use best efforts to obtain the necessary approvals to list the Shares on the TSXV.

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