TORONTO--(BUSINESS WIRE)--Mednow Inc. (“Mednow” or the “Company”) (TSXV: MNOW), Canada’s on-demand virtual pharmacy, is pleased to announce that the Company has closed a C$500,000 investment in Doko Medical Inc. (“Doko Medical”) by way of convertible debenture (the “Doko Investment”), for a 2.8% equity interest in Doko Medical at a C$17.5M pre-money valuation.
Doko Investment Highlights
Strategic highlights of the Doko Investment are as follows:
- Pathway to U.S. telemedicine market: the market for telemedicine in the U.S. is expected to reach US$64B by 2025, growing 18% per year1;
- Expertise in behavioral health: the behavioral health market is expected to increase to US$242B by 2027, growing 5% annually2, and Doko Medical currently has offerings in mental health and erectile dysfunction services;
- Geographic reach across the U.S.: Doko Medical currently operates in 38 states, with plans to obtain national coverage by the end of the fourth quarter of 2021;
- Established infrastructure: Doko Medical’s current service coverage includes COVID-19 tests, prescription medications, mental health support by qualified physicians, sick notes, referrals, and video visits;
- Platform to leverage pharmacy expertise: with Doko Medical focused on growing its digital healthcare operation, Mednow can contribute its pharmacy industry knowledge and technological resources to advance growth in the pharmacy channel for both companies.
Doko Medical is a virtual healthcare provider operating across the United States (U.S.). Currently servicing 38 states, Doko Medical has over 100 physicians and health care workers engaged over its platform, which specializes in urgent care, mental health and erectile dysfunction. Doko Medical’s platform is used daily by physicians and patients, and patients can order prescriptions and send them directly to a pharmacy of choice, resulting in a hassle-free patient experience. The proceeds of the Doko investment will be used by Doko Medical to invest in digital marketing, hire U.S. sales and management staff, hire care-navigation professionals to manage patient care, and invest in a technological platform.
“Mednow’s initial investment in Doko Medical aligns with our goals of providing exceptional quality service and discrete, fast and convenient support to patients through digital pharmacies. This investment initiates Mednow’s entry into the U.S. telemedicine and pharmacy services in a prudent manner where we have the ability to benefit from the growing demands of these industries, with the option to increase our investment in the future” said Karim Nassar, Chief Executive Officer of Mednow. “Given the sensitive and underserved market to support patients with erectile dysfunction, coupled with a lack of insurance coverage in the United States, we believe this investment will show our commitment to the importance of men’s health and wellness”.
From start to finish, Doko Medical will match each patient with a physician, provide the required medications, and most importantly, offer ongoing support with one of their experienced pharmacists. Currently Mednow’s online services, both on our website and our app, support men’s health in Canada, providing physician care and treatments for erectile dysfunction and male balding with free delivery.
The investment in Doko Medical further emphasizes Mednow’s support for patient care, as it lines up with recent investments in virtual doctor services, mental health, genetic testing technology and specialty pharmacy. The Doko Medical investment compliments the acquisitions of Infusicare Canada Inc. and Medvisit, which combined had aggregate revenue and gross profit in their last fiscal year of approximately C$13M and C$1.2M respectively.
“We are excited to join forces with a healthcare leader like Mednow, as we continue to strive to become a truly holistic patient care platform. Servicing our patients in an ethical, comprehensive manner is our mission and a partnership with Mednow further reinforces that journey” said Vino Shan, Founder and Chief Technology Officer of Doko Medical.
More information on Doko Medical is available at www.doko.md.
About Doko Medical Inc.
Doko Medical is a Health Insurance Portability and Accountability Act (HIPAA) compliant and secure telemedicine platform that helps clinicians deliver thoughtful patient-centric care anytime, anywhere. Doko specializes in urgent care, mental health, and erectile dysfunction. The platform is used daily by physicians and patients. Providers can order prescriptions and send them directly to a pharmacy of choice, resulting in a hassle-free patient experience. Doko Medical was founded in 2019 by Vino Shan and has grown to be used by over 270 patients on a monthly basis. Since its inception, the Doko platform has experienced significant growth from both a clinician and a patient perspective. Doko is conveniently located in San Francisco, California, and Toronto, Ontario, which provides comprehensive North American coverage and support to users.
About Mednow Inc.
Mednow is a healthcare technology company offering virtual access with exceptional care. Designed with access and quality care in mind, Mednow.ca provides virtual pharmacy and telemedicine services, as well as doctor home visits, with convenience and through an interdisciplinary approach to healthcare that is focused on the patient experience. Mednow’s services include free at-home delivery of medications, a user-friendly interface for easy upload, transfer, and refill of prescriptions, access to healthcare professionals through an intuitive chat experience, a specialized PillSmart™ system that packages prescriptions, and vitamins by date and time, and doctor consultations.
To learn more, follow Mednow on Facebook, Twitter, LinkedIn, and Instagram, or visit our website at www.mednow.ca/.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements:
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, are forward-looking statements and contain forward-looking information, including statements relating to: Doko Medical’s expected use and impact of the proceeds of Mednow’s investment. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that Doko Medical will use the proceeds of Mednow’s investment and the impact of such investment will be as anticipated by management. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that Doko Medical will not use the proceeds of Mednow’s investment and the impact of such investment will not be as anticipated by management, and other risk factors set out in the Company’s final long form prospectus dated February 26, 2021 available for review on the Company’s profile at www.sedar.com. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.
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1 Global Market Insights, Inc, 2019 (https://www.gminsights.com/industry-analysis/us-telemedicine-market)
2 Precedence Research Behavioral Health Market Report, 2020 (https://www.precedenceresearch.com/behavioral-health-market)