Here we go again. Another week goes by and another healthcare company announces its intentions to list on the TSX Index. This time, it is MCI OneHealth Technologies, "one of the largest primary care clinic groups" in Canada which filed its preliminary prospectus.
Although the company offers virtual services and recently launched its MCI Connect virtual platform - this is still very much a clinic stock which has been in operation for 30 years. The company aims to raise $30M through the issuance of shares at a price between $5.00 and $6.76 per share.
OneHealth currently has 25 clinics (20 in Ontario, 5 in Alberta) with approximately 280 health professionals and 40 technical staff and provides approximately 850,000 consultations annually.
Despite it being a primary clinic company, it is investing heavily in technology and has shared the road map below. It is unclear if, the Bright OS data analytics, the MCI Virtual Connect (telehealth) and the OneHealth Assistant (chat bot)platforms are proprietary or built on third party platforms. Regardless, tech is at the center of its strategy moving forward. Worth noting, the company intends to use the proceeds from this IPO to execute on its tech strategy. Virtual Connect is currently rolling out and BrightOS and OneHealth Assistant are expected to launch in 2021.
Over the next couple of years, growth is expected to be driven by the above tech products, expanded private healthcare services (e.g., occupational health for corporations) and acquisitions.
What stands out here more than others - is the large focus on data analytics and healthcare data. It sees customers of aggregated data as being drug manufactures, clinic networks, research institute, public health units and more.
At this point - MCE OneHealth hasn't been a high growth story. It has grown sales from $43.5M in 2017 to $46.3M in 2019 (2% annually) and through the first nine months of the year, the company generated $27.59M in revenue down from $34.3M in the same period of 2019. This is not surprising if one considers that it generates most of its revenue from clinics which were all but shut down in the early stages of the pandemic. Walk-in visits are down 40% this year. Likewise, the company is still in the very early stages of its focus on technology which has to materially contribute to the top or bottom lines.
On the bright side, it is profitable and generates stable EBITD margins in the 8% range - which is what makes clinics an attractive business model - stable and reliable cash flows.
Once again, we don't have enough information to speak to valuation but will get a better idea once the company prices its offering. Oncea gain, we strongly encourage anyone interested in this company to have a look at its prospectus so you can better understand its business model.
MCI OneHealth Technologies Inc. Files Preliminary Prospectus for its Initial Public Offering
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
TORONTO, Dec. 14, 2020 /CNW/ - MCI OneHealth Technologies Inc. ("MCI OneHealth"), one of the largest primary care clinic groups in Canada with 25 tech enabled clinics, filed a preliminary prospectus with the securities regulatory authorities in each of the provinces of Canada, other than the Province of Quebec, in connection with its proposed initial public offering of its Class A Subordinate Voting shares.
The offering is being made through a syndicate of underwriters led by Canaccord Genuity Corp. and includes Clarus Securities Inc., Echelon Wealth Partners Inc., Eight Capital Corp., Haywood Securities Inc., Stifel, Nicolaus & Company, and TD Securities.
Fasken Martineau DuMoulin LLP is acting as legal counsel to MCI OneHealth and Borden Ladner Gervais LLP is acting as legal counsel to the underwriters.
The preliminary prospectus contains important information relating to the offering and is still subject to completion or amendment. The preliminary prospectus is available on SEDAR at www.sedar.com. Copies of the preliminary prospectus may be obtained from any of the underwriters listed above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
No securities regulatory authority has either approved or disapproved the contents of this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act"), as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the U.S. Securities Act). Accordingly, the securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Completion of the offering is subject to the receipt of customary approvals, including regulatory approvals.
About MCI OneHealth Technologies Inc.
MCI OneHealth is focused on empowering patients and doctors with advanced technologies to increase access, improve quality, and reduce the cost on healthcare. As one of Canada's leading primary care networks with 25 technology enabled clinics, MCI OneHealth serves over 850,000 patients annually and has been a part of the healthcare community for over 30 years. Since the deployment of MCI/Connect, the company's proprietary digital platform, MCI OneHealth continues to develop an ecosystem of digital applications, which will target modernizing and personalizing the primary care experience. MCI OneHealth additionally offers an expanding suite of occupational health service offerings that support a growing list of over 250 corporate customers. Driven by a proven management team of doctors and experienced executives, MCI OneHealth is executing a strategy focused on acquiring technology and health services that complement its technology and data-focused roadmap. Additional information can be found at www.mcionehealth.com.
This press release may contain forward–looking information within the meaning of applicable securities legislation, which reflects MCI OneHealth's current expectations regarding future events. Forward–looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond MCI OneHealth's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward–looking information. Such risks and uncertainties include, but are not limited to, failure to complete the offering and related transactions, the ability to execute on our strategy, and the factors discussed under "Risk Factors" in the preliminary prospectus of MCI OneHealth dated December 10, 2020. MCI OneHealth does not undertake any obligation to update such forward–looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
SOURCE MCI OneHealth Technologies Inc.