HealthLynked
Completes
Acquisition
of MedOfficeDirect,
LLC,
Adding
Discounted
Medical Supplies
for
Patient
Members
and Healthcare
Providers
Naples,
FL --
October 20, 2020 -- InvestorsHub NewsWire
-- HealthLynked
Corp (HLYK),
a global
healthcare network
focused on care management of its members and a provider of
healthcare technologies that connects doctors, patients and medical
data,
today
announced
that it has acquired
MedOfficeDirect,
LLC ("MOD"),
a Naples, FL based virtual distributor of discounted medical
supplies selling to both consumers and medical
practices.
The
acquisition includes aggregate
consideration valued at up to $6.0
million, including
(i) $2.7 million
of HealthLynked
common
stock issued at
closing,
(ii) $0.7 million cash,
and (iii) up to $2.6 million of additional HealthLynked common
stock based on MOD achieving specified
annual
revenue
milestones for the
next four
years.
MOD's
debtholders agreed
to accept
membership interests in MOD
in
exchange for satisfaction of 40% of
their
outstanding debt, with the remaining 60% satisfied by the $0.7
million cash paid at closing. They
also
agreed to waive and forgive all accrued interest payments
totaling
$0.6
million.
"The
acquisition of MedOfficeDirect, LLC allows us to better
serve our patient members and healthcare providers. MedOfficeDirect
has demonstrated the demand for a low cost
direct-to-consumer
medical supplier with significant year-over-year
revenue
growth. As the HealthLynked
Network has grown,
through our recent ACO acquisition, new patient members, and
healthcare providers, we see significant opportunity to increase
our value in healthcare and drive even more adoption across all
these areas." said
HealthLynked Chairman
and CEO Michael Dent
M.D.
Medical
supply
sales in
the US exceed $155
billion
annually.
Launched
in 2014, MOD
serves
both
consumers
and
healthcare providers with more than
13,000
name brand medical supplies in more than
150
different
categories. MOD
has
users in
every
state and
provides some of the lowest prices on name brand
medical
products online, shipped direct to
the customer
within 3
to 5 days by leveraging volume
buying. Providing an easy
way for patient members and healthcare providers to purchase
medical supplies at a low
cost
will
help
drive
increased
adoption
of the HealthLynked
Network
while
increasing the
Company's consolidated revenue
and
profit. HealthLynked
Members
Personal Health
Records (PHRs)
detail
a
patient's
specific
medical needs; in combination with
MedOfficeDirect, this
will
provide a
convenient way for
patients
to
purchase the medical supplies and
products they need online and
at
significant savings.
Key
benefits of the acquisition include:
-
Increased revenue
with significant
projected
growth. The
acquisition is expected to contribute approximately
$1.5
million of
revenue in year one, increasing
HealthLynked's
consolidated revenues
by
some
25%.
The
earnout is tied to four years of 25%
annual
growth,
resulting
in a year 4 revenue earnout target of $2.9
million by
2024.
-
Company and customer synergies.
HealthLynked continues to
expand the number of patient and physician members in
both
the HealthLynked Network
and in its ACO network and plans to
offer
MOD's discounted medical supplies to this user
base.
-
Expansion into discounted medical supplies. Expansion
into this multi-billion-dollar
industry
and
access to MOD's existing customer base is expected to further
increase the number of patient members and healthcare providers
using the HealthLynked
Network.
George
O'Leary, Chief Financial Officer of HealthLynked
stated, "This
is
the
third
of
what we
expect to be numerous
acquisitions for
HealthLynked, focused on
complementary
businesses that enhance the HealthLynked Network,
for which we have set a goal of
adding
tens
of millions of patients
and hundreds of thousands of physicians over the next five
years."
He
continued, "This
acquisition
is
unique
in
that it is focused
on
purchasing
a
high
growth business
that
distinctively
complements
the
anticipated growth in our digital
healthcare business. We
are paying
only
12% in cash,
with
45% in
stock
and
up
to 43% in
a
four-year
stock-based
earnout
that
requires 141% growth during this period for the earnout to be fully
realized."
Advisors
K&L Gates LLP and SMGQ Law served as legal counsel for the
acquisition.
About HealthLynked Corp.
HealthLynked Corp.
provides a solution for both patient members and providers to
improve healthcare through the efficient exchange of medical
information. The HealthLynked Network is a cloud-based platform
that allows members to connect with their healthcare providers and
take more control of their healthcare. Members enter their medical
information, including medications, allergies, past surgeries and
personal health records, in one convenient online and secure
location, free of charge. Participating healthcare providers can
connect with their current and future patients through the system.
Benefits to in-network providers include the ability to utilize the
HealthLynked patent pending patient access hub "PAH" for patient
analytics. Other benefits for preferred providers include HLYK
marketing tools to connect with their active and inactive patients
to improve patient retention, access more accurate and current
patient information, provide more efficient online scheduling and
to fill last minute cancelations using our "real time appointment
scheduling" all within our mobile application. Preferred providers
pay a monthly fee to access these HealthLynked services. For
additional information about HealthLynked Corp. visit
www.healthlynked.com and connect with HealthLynked on Twitter,
Facebook, and LinkedIn.
About
MedOfficeDirect,
LLC
MedOfficeDirect, LLC
started in 2014 and based in Naples Florida,
is a virtual distributor of discounted medical supplies selling to
both consumers and medical
practices
throughout the United States. With over 13,000 name brand medical
products in over 150 different categories, MOD leverages Group
Purchasing Organization (GPO) pricing discounts with a small
unit-of-measure
direct-to-consumer
shipping model to make ordering medical supplies both convenient
and
highly
cost effective for its users.
Forward
Looking Statements
Forward-Looking
Statements in this press release, which are not historical facts,
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Our actual results,
including as a result of any acquisitions, performance or
achievements may differ materially from those expressed or implied
by these forward-looking statements. In some cases, you can
identify forward-looking statements by the use of words such as
"may," "could," "expect," "intend," "plan," "seek," "anticipate,"
"believe," "estimate," "predict," "potential," "continue,"
"likely," "will," "would" and variations of these terms and similar
expressions, or the negative of these terms or similar expressions.
Such forward-looking statements are necessarily based upon
estimates and assumptions that, while considered reasonable by our
management, and us are inherently uncertain. We caution you not to
place undue reliance on any forward-looking statements, which are
made as of the date of this press release. We undertake no
obligation to update publicly any of these forward-looking
statements to reflect actual results, new information or future
events, changes in assumptions or changes in other factors
affecting forward looking statements, except to the extent required
by applicable laws. If we update one or more forward-looking
statements, no inference should be drawn that we will make
additional updates with respect to those or other forward-looking
statements. Certain risks and uncertainties applicable to our
operations and us are described in the "Risk Factors" section of
our most recent Annual Report on Form 10-K and in other filings we
have made with the U.S. Securities and Exchange Commission. These
reports are available at www.sec.gov.
Contacts:
George
O'Leary
Chief
Financial Officer
goleary@healthlynked.com
(800)
928-7144, ext. 99
Investor
Relations Contacts:
Stephanie
Prince
PCG
Advisory Group
sprince@pcgadvisory.com
646-762-4518
Jim
Hock
Hanover
International Inc.
jh@hanoverintlinc.com
760-564-7400
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