CloudMD Acquires Majority Interest in Innovative U.S. Based Provider of Cloud Based Practice Management and Electronic Health Records with US$4.9 Million in Sales

Established network of 200 clients, 800 physicians, 5.5 million patient charts across over 35 states in the U.S.

• CloudMD to acquire 87.5% of Benchmark Systems, a proprietary cloud–based practice management, b****** and telehealth enabled electronic health record provider powered by artificial intelligence (AI)
• The acquisition is immediately accretive as it provides CloudMD with expansion, distribution and optimization opportunities throughout the U.S. in supporting a patient centric model
• Benchmark is a profitable, well-established business generating US$4.9 million and over 13% EBITDA annually from SAAS based, recurring revenue
• CloudMD will have access to leading, global AI technical teams and software to further pursue the U.S. market

CloudMD Software & Services Inc., a telehealth company revolutionizing the delivery of healthcare to patients, is excited to announce that it has entered into a Binding Term Sheet (“Term Sheet”) to purchase a majority interest in Benchmark Systems Inc. (“Benchmark”), a leading cloud-based provider of fully integrated solutions that automate healthcare workflow processes including revenue management, practice management and electronic records management. CloudMD will purchase 87.5% of Benchmark from Benchmark’s parent company and global healthcare and AI leader, AntWorks Inc. (“AntWorks”). AntWorks will retain a 12.5% equity stake and remain a strategic partner for CloudMD both in the U.S. and globally.

Leveraged by 42 years of experience, Benchmark develops and delivers innovative cloud-based technology, integrated medical practice solutions including patient portals, personal health records, scheduling solutions, b******, messaging, eFax, computerized physician order entry (CPOE) and prescription scripting. Benchmark has a national U.S. network of 200 clients, 800 physicians, with 5.5 million patient charts across 35 states. On average, Benchmark processes approximately $2.5 million in charges (gross) each month.

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The COVID-19 pandemic has exponentially accelerated transformational changes in how healthcare is accessed and delivered to patients while addressing the challenges of providing quality, cost effective and personalized patient centric care. Benchmark’s integrated solutions and its suite of medical software has been built alongside healthcare providers to create a more seamless, patient centric approach to healthcare, while solving profitability, productivity and quality issues, translating into improved health outcomes and financial performance.

As CloudMD continues to embark on its U.S. expansion, the acquisition of Benchmark positions CloudMD with a strong footprint across North America. The acquisition brings synergies through Benchmark’s 200 clinic ecosystem across over 35 states in the U.S. Benchmark’s suite of software solutions provides CloudMD with significant distribution channels into the U.S. and integration opportunities for its other virtual care solutions such as those offered through Cloud Practice, Snapclarity and iMD Health. With Benchmark’s experienced leadership team, and seamless workflow process, CloudMD will not only benefit from its extensive geographic reach and client commitment, but also the expertise of developing SAAS systems that support medical practitioners while complying with specific state requirements.

AntWorks is a global leader in artificial intelligence (AI) and intelligent automation, creating new possibilities with data through digitization, automation and enterprise intelligence. As the world’s first and only Integrated Automation Platform (IAP) powered by fractal science principles and pattern recognition that understands every data type, ANTstein™ digitizes every type of data type for a diverse range of industries. As a minority holder of Benchmark, AntWorks will continue to work with CloudMD providing expertise in global hyper automation and AI and provide access to cutting edge AI technologies.

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The purchase of Benchmark will be immediately accretive to CloudMD and provides a number of opportunities for optimization to drive further revenue. In the fiscal year ending March 31, 2020, Benchmark generated approximately US$4.9 million in revenues with earnings before interest, taxes, depreciation and amortization (EBITDA) margins of 13%. Approximately 80% of revenue was SAAS based, recurring revenue.

Essam Hamza, CEO of CloudMD commented, “We believe that Benchmark will expedite our U.S. expansion efforts and enhance the quality, operations and scalability of our business. Benchmark is already well-established in the marketplace and their significant U.S. presence will help us navigate individual state requirements, while providing opportunities for existing software integration, cross selling and revenue optimization.” Amit Mathur, President of CloudMD added, “The current healthcare sector is prime for this automation technology which streamlines manual processes and makes them much more efficient. We look forward to working with AntWorks, a world leader in AI and automation, as we look to continue our expansion globally.”

Asheesh Mehra, Group CEO and Co-Founder of AntWorks says “We look forward to working with CloudMD to continue delivering on our shared commitment of providing holistic, patient centric care. Benchmark’s suite of revolutionary, AI driven software is already well established in the United States. Govind Sandhu, COO and Co-Founder of AntWorks adds, “With CloudMD’s healthcare expertise, proprietary telemedicine, mental health and patient education software, we are confident the synergies in this partnership will continue to expand the markets we serve and provide better, whole patient care to our combined network in North America and globally.”

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