Conversion Labs,
Inc. (NASDAQ: CVLB), a leading
direct-to-patient telehealth company, will change its name to Life
MD™ on February 22, followed by the official launch of its
subscription-based primary care and concierge services offering
designed to positively transform all aspects of a patient’s
healthcare.
“We see our new name reflecting our evolution and expansion from
a branded telemedicine products company into a leading provider of
end-to-end concierge telehealth services,” stated company
co-founder and CEO, Justin Schreiber. “Life MD expresses our desire
to have a deeper connection to the daily lives of our patients who
desire more convenient and on demand access to healthcare,
prescriptions and over-the-counter
medications.” Life
MD will offer virtual on-demand access to highly qualified licensed
physicians across all 50 states. Its mobile-first interface will be
powered by the company’s proprietary Veritas MD digital health
platform, providing a seamless integration between doctors,
patients, medical information, and pharmacy. Patients will be
intelligently and dynamically paired with the right physician based
on the patients’ needs, goals and lifestyle.
“Our vision is to dramatically improve the healthcare experience
of our patients with highly personalized care, akin to having a
doctor in the family,” added Schreiber. “Life MD represents an
important and valuable opportunity to support the long-term health
of our patients by fostering longitudinal relationships that create
better health and well-being.”
To support the nationwide rollout of Life MD and further expand
the company’s telehealth pipeline, Conversion Labs has completed a
$14 million unregistered private placement at $23 per share with
certain individual and institutional investors. BTIG, LLC acted as
exclusive placement agent for the offering. Stefan Galluppi,
company co-founder and chief technology officer, commented: “As one
of the earliest and largest players in the telemedicine space, we
have been able to capitalize on the major paradigm shift in
healthcare created by advancements in digital health technology and
increasing widespread customer demand for virtual healthcare
services.”
“This investment by a select group of strategic investors,
including those from prior financing rounds, affirms the strength
of our business strategy and growth outlook as a national leader in
telehealth,” continued Galluppi. “The additional capital will
support our aggressive growth initiatives, including scaling the
size and reach of our digital health ecosystem, expanding our suite
of brands for men’s and women’s health, and accelerating customer
acquisition and adoption of our existing brands and new concierge
services.”
The company recently relaunched its popular Shapiro MD hair
products for men and women under a new subscription-based model,
similar to Rex MD’s subscription-based model introduced early last
year. The company is also preparing to launch Nava MD, the
company’s teledermatology brand for women supported by a patented
and clinically proven OTC technology platform.
The company recently reported preliminary results for 2020, with
revenue up 205% to $38.0 million. The record month of December
ended the year at a $60 million annualized revenue run-rate. Annual
recurring revenue (ARR) generated by subscriptions is expected to
total $26.0 million at yearend 2020, up 525% versus yearend
2019.
Upon the name change on February 22, the company expects its
common stock to begin trading under the symbol, LFMD.
About the Private PlacementThe securities sold
by Conversion Labs in the private placement were not registered
under the Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration with the
U.S. Securities and Exchange Commission (“SEC”) or an applicable
exemption from such registration requirements and exemptions under
applicable state securities laws.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification under the securities laws of
any such state or other jurisdiction.
Additional details of the private placement can be found in the
company’s current report on Form 8-K filed with the U.S. Securities
and Exchange Commission and available at sec.gov, and from the
Investors section of the company’s website at
ir.conversionlabs.com.
About Conversion LabsConversion Labs, Inc.
is a leading telemedicine company with a portfolio of online
direct-to-consumer brands. The company combines virtual medical
treatment with prescription medications and unique over-the-counter
products. Its network of licensed physicians offers telemedicine
services and direct-to-consumer pharmacy to consumers across the
U.S. To learn more, visit Conversionlabs.com.
Annual Recurring RevenueConversion Labs
calculates its annual recurring revenue (ARR) by multiplying by 12
the monthly sum of revenue attributed exclusively to automatic
subscription sales from customers that are engaged in the company’s
rebill structure as it applies to its main brands: Shapiro MD, Rex
MD and PDFSimpli. In the company’s calculation of ARR, it does not
consider single sales from customers that repurchase its products
through the company’s standard checkout pages, Amazon Marketplace
or involving the assistance of a customer service representatives.
It also does not include revenue from the initial purchase of a new
subscriber.
Important Cautions Regarding Forward-Looking
StatementsThis news release includes forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934, as
amended, regarding, among other things our plans, strategies and
prospects -- both business and financial. Although we believe that
our plans, intentions and expectations reflected in or suggested by
these forward-looking statements are reasonable, we cannot assure
you that we will achieve or realize these plans, intentions or
expectations. Forward-looking statements are inherently subject to
risks, uncertainties and assumptions. Many of the forward-looking
statements contained in this news release may be identified by the
use of forward-looking words such as "believe," "expect,"
"anticipate," "should," "planned," "will," "may," "intend,"
"estimated," and "potential," among others. Important factors that
could cause actual results to differ materially from the
forward-looking statements we make in this news release include
market conditions and those set forth in reports or documents that
we file from time to time with the United States Securities and
Exchange Commission. All forward-looking statements attributable to
Conversion Labs, Inc. or a person acting on its behalf are
expressly qualified in their entirety by this cautionary
language.
Life MD™, Veritas MD™, Shapiro MD™, Rex MD™ and Nava MD™ are
trademarks of Conversion Labs. All other trademarks are the
property of their respective owners.
Company
Contact Conversion
Labs Email
Contact
Media and Investor Relations ContactRon Both or
Grant StudeCMA Investor RelationsTel (949) 432-7566Email
Contact
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