$RQHTF agreement with Congizant is Huge.
Congizant is 185 on the Fortune 500 list and boasts and impressive list of assets that bodes extremely well for Reliq Health as they move forward into their rapid growth phase. Cognizant provides Reliq a path to provide their IUGO health monitoring service to large scale providers without impacting their current operations of uploading 5000 patients on to the service monthly. One of the big challenges with adding patient is hiring care managers to facilitate the integration and to work with the clients and patients and currently it has been the limiting factor keeping the company fixed to the growth projections they have publicly released including having 100k subscribers on the service by end of 2022. Cognizant changes all of this... Realize, Cognizant does not make this deal without months and months of internal due diligence. If Cognizant believes... well... you know the rest.
Cognizant has the immediate ability to provide management, web services and uploading services and at a cost cheaper than Reliq can currently provide. Cognizant can, without up front cost, put 30k -100k people on the system in a month utilizing existing staff and infrastructure within their existing systems. At a cost cheaper than Reliq providing room to net profitability without impacting the bottom line of Reliq. In addition to an assumed finders fee for clients brought in through their vast pool of clients and patients this is an easy win win for both companies. Cognizant currently provides services to 300+ health systems, 347000+ care providers and 200m people globally. This is good for them both.
Reliq provides chronic health monitoring to patients primarily in the US through Medicare and Medicaid funding. A patient that need home monitoring will be put on the service by they doctors at no cost to the patient. The average clinical practice can generate new revenue of over $372 USD per patient per month in payments from CMS by deploying iUGO Care. Hospital admissions are reduced by over 90% in chronic disease patients using iUGO Care, and the average cost to the healthcare system is reduced by over 80%. In addition current gross margins are over 75% and are expected to increase. EBITDA margins are greater than 45%.
Currently the company has 40k clients on the subscription service and over 500,000 in queue to go on the system. At their very manageable pace of adding 5,000 people to the system a month, by the end of 2022 they will have 100k people on the service with a monthly revenue of $5 million. This is without any additional assistance from their agreement with Cognizant. The company has mentioned they have been working on some huge contracts with millions of patients of which there would be some significant uploads of patients as part of the agreements and for those who haven't been paying attention, this is what Cognizant brings to the table. The ability to immediately and effectively deliver on these contracts.
If you have gotten this far, I hope you will take some time to do an objective deep dive into this company and the potential for the investment. I expect them to absolutely crush their projections now that they have this agreement in place and now that I have an understanding of the arrangement I am even more convinced that this will be a massive win as a long term investment. With the key milestones expected this year including uplisting to NASDAQ in the second half of 2022 I strongly believe this could be 10x for those who buy and hold for a buy out or an easy 5x for those who just hold for the uplisting.
Good luck and do you DD. This is my biggest personal holding with a little over 100k shares.
