CloudMD Software and Services Inc. (DOCRF)

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CloudMD Announces Divestment of Pharmacies to Neighbourly Pharmacy.

Source
https://finance.yahoo.com/news/cloudmd-announces-divestment-pharmacies-neighbourly-113000478.html

Mon, October 31, 2022 at 12:30 PM

CloudMD Software & Services Inc., is pleased to announce that it has entered into a definitive agreement with Neighbourly Pharmacy Inc. (TSX:NBLY) for the sale of its British Columbia based pharmacies for approximately $3.8 million. Neighbourly is Canada’s largest and fastest growing network of independent pharmacies, with 284 locations across Canada following completion of this transaction.

Under the Agreement, CloudMD has agreed to sell Neighbourly its two brick-and-mortar retail pharmacies, Cloverdale Pharmacy Ltd. and Steveston Health Centre Ltd., located in Surrey and Richmond BC, respectively. These two pharmacies were referenced on a no-names basis in a Neighbourly press release on November 24th (1). The divestitures of the two pharmacies will not affect the services the Company currently delivers within its core business.

On October 11th, CloudMD also announced that it had entered into a definitive agreement to divest its clinics and Cloud Practice asset to WELL Health for $5.75 million. In total, CloudMD has generated over $9 million in non-dilutive capital as part of its strategy to divest its non-core assets and focus on the performance and growth of its core business, Enterprise Health Solutions (“EHS”) and Digital Health Solutions (“DHS”).

Karen Adams, CEO of CloudMD commented, “We are pleased with the progress and non-dilutive capital we’ve been able to generate through the divestiture of assets in our non-core Clinics and Pharmacies division. Between this transaction and the previously announced divestiture of Cloud Practice and clinics we’ve generated over $9 million in capital we can redeploy for the growth of our EHS Division, which will allow us to continue scaling our core business. Given these challenging and unpredictable markets, we remain focused on delivering meaningful, revenue growth, driving near-term profitability, prudent cash management and improving operating expenses to provide long-term operational consistency and stability.”

Transaction Details
The consideration to be paid by Neighbourly in connection with the acquisition of the pharmacies from CloudMD is approximately $3.8 million in cash. Closing of the transaction is subject to standard closing conditions and the consideration is subject to standard adjustments.

INFOR Financial Group acted as exclusive financial advisor and Cassels Brock & Blackwell LLP acted as legal advisor to CloudMD. The transaction is expected to close in the fourth quarter of 2022.