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Contakt World acquires health screening app HealthCheck

HealthCheck is a secure, cloud-based platform that allows organizations to track and evaluate employee and student health as well as COVID-19 related symptoms in real-time

Contakt World - Contakt World acquires health screening app HealthCheck
Stratum Health Solutions built the platform that has 1,000-plus customers, including over 50,000 users within Atlanta Public Schools across 91 learning sites 

Contakt World (CSE:HELP) Technologies Corp has acquired Stratum Health Solutions LLC from RTAE Holdings LLC.

Stratum operates HealthCheck, an encrypted wellness tracking and analytics tool with 1,000-plus current customers, including over 50,000 users within Atlanta Public Schools across 91 learning sites. 

HealthCheck is a secure, cloud-based platform that allows organizations of all sizes to track and evaluate employee and student health as well as coronavirus (COVID-19) related symptoms in real-time through an app. 

READ: Contakt World teams up with Satcher Health Leadership Institute to help identify underserved populations access healthcare

In connection with the acquisition, Contakt World (CSE:HELP) said it issued to RTAE 3,523,933 Class A Subordinate Voting Shares for US$1.325 million at a deemed issue price of C$0.47 per Contakt Share and a convertible note for US$4.155 million. 

The note bears interest at 3.5% and is convertible at the company's or RTAE's option after six months into Contakt shares at a conversion price equal to a 20% discount to the 20-day volume-weighted average closing price of the Contakt shares, subject to a minimum conversion price of C$0.65. 

Assuming conversion, RTAE can only liquidate up to 1/6 the value of the note in each 30-day period. The note is secured against the membership interests of Stratum and the source code for HealthCheck now held by Contakt World (CSE:HELP). RTAE is also eligible to receive earn-out payments at 12 months and 24 months, respectively, according to certain revenue milestones.

Following strict data privacy laws, Contakt World said HealthCheck's intuitive digital portal enables users to participate in a health self-assessment based on Centers for Disease Control (CDC) guidelines. They answer a series of health-based questions at any point in the day.

Contakt World said it hopes to rapidly scale HealthCheck services through its partner network, including the National Association of County and City Health Officials and Satcher Health Leadership Institute, Morehouse School of Medicine.

HealthCheck profitable

The company noted that HealthCheck generated US$1.23 million in revenue over the last 12 months with US$0.44 million in net income during the same period. A 20% increase in revenue was observed between the last six months and the previous six-month period.

"With HealthCheck's daily health check-ins, when people show symptoms for COVID-19, the participating organization immediately receives alerts and access to their user's unique health dashboard," said Justin Beck, chief visionary officer at Contakt World, in a statement. 

"The technology is a valuable addition to our product and service portfolio, anchored by Smart Health RM. We believe HealthCheck will serve as an excellent sales channel for Contakt World's other solutions, given HealthCheck's existing 1,000+ customers, and the app provides a potential avenue for Contakt World to incorporate vaccine passports in our product suite."

Ryan Trimberger, Stratum’s co-founder and CEO added: "Contakt World's global technology platform attracted us as an ideal venue to offer HealthCheck. We were led to create HealthCheck in response to the global COVID-19 pandemic and the urgent need for organizations to make informed safety and operational decisions to keep people healthy, leveraging our expertise in cloud-based technology. Through this acquisition, we're now shareholders in Contakt World, and believe their team is well positioned to leverage and scale HealthCheck to global prominence through their relationships in public health and healthcare."

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

 

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