Last month, we highlighted Premier Health Group Inc. (PHGI.CN) (PHGRF) after the company reported a major acquisition and this is an opportunity we started to closely monitor. This acquisition was massive but the market failed to respond and the shares have been under considerable pressure.
Earlier this month, Premier Health issued a corporate update that makes us very excited about the future of the company. The recent decline has been significant the growth prospects are too attractive to ignore at these levels. Today, we have issued an update on Premier Health and believe that this is an opportunity to watch.
Premier is Positioned for Growth after a Massive Acquisition
In January, Premier Health Group reported a massive development and announce the acquisition of Cloud Practice Inc. On a monthly basis, ClinicAid processes upwards of $30,000,000 in payments to over 3,000 health providers and this represents a significant piece of business. This is a major acquisition that we expect to be immediately accretive to Premier Health.
The terms of the acquisition were favorable for Premier Health Group shareholders and we were surprised by the lack of response from the market. The acquisition price is milestone based and Premier will pay a total consideration of up to $5 million to Cloud Practice shareholders.
Cloud Practice will make Premier Health a major player in the cannabis industry since it already services over 60 cannabis clinics with over 120,000 active patients products. We are favorable on this aspect of the business and consider it to be a major growth opportunity due the large amounts of valuable data that is being generated by this network.
Cloud Practice offers a suite of solutions that include: Juno EMR, a cloud based EMR solution; ClinicAid, a medical billing software; and MyHealthAccess, an online patient portal.The Juno EMR system is currently used by 287 clinics, over 3,000 licensed practitioners, 1,500 staff and 2,870,000 registered patients. This is significant and we are favorable on the growth prospects going forward.
Cloud Practice’s founders, including CEO Jordan Visco, and the entire support team, consisting of several software developers and sales staff, will join and work alongside the Premier Health team to offer tools and resources providing for better efficiency on a day-to-day basis for both physicians and customers. This is a significant aspect of the story and we expected the integration process to be seamless.
Announces Strategic Relationship for International Growth
Last month, Premier announced a partnership with a major online healthcare company in China, 360 Health. This will help facilitate Premier Health’s growth overseas and is a major part of its international expansion strategy. This is a significant relationship and we are favorable on the growth prospects associated with it.
The parent company, 360 Security Technology, is a leading online service company in China with a market capitalization of over $20 billion USD as of February 14, 2019. The strength of the parent company is an important aspect of the story and this gives us more confidence when it comes to execution.
China represents the largest market for Telemedicine and has begun adopting a family primary care practice model. This provides an opportunity for Premier Health’s team of health care providers to play an essential role in providing general practitioner training virtually and on site through medical seminars.
Through this relationship, Premier Health has several catalysts for growth and we are favorable on this. As part of the collaboration, Premier and 360 Health will implement an infrastructure whereby Premier will be providing second opinion services by connecting 360 Health’s patients in China with doctors in Canada both remotely and in person. We think this is an exciting opportunity and will monitor how the team executes on it.
An Attractive Growth Story
Through organic and inorganic growth initiatives, Premier Health has significantly advanced its fundamental story and we favorable on the recent developments. The acquisition of Cloud Practice was massive as it provides the company with an asset that is generating significant revenues. This acquisition also makes Premier Health a major player in the cannabis sector and we are favorable on the growth prospects associated with this.
Premier Health has several significant catalysts for growth and we are monitoring how the team executes from here. The company is led by a management with a proven track record of success and we are favorable on the decision to bring on the Cloud Practice team. This make the acquisition much easier to complete and integrate and we are monitoring this part of this story.
Although Premier Health has significantly advanced its fundamental story, the shares have been under considerable pressure and this is an opportunity to monitor. To learn more about the company, please email email@example.com.
Published at Wed, 20 Feb 2019 14:13:43 +0000