TSX.V VHI January 2021 - Investor Presentation - VitalHub
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Investor Presentation
TSX.V VHI
January 2021
Reader’s Advisory
This corporate presentation dated January 2021(the “Presentation”) has been prepared by management of Vitalhub Corp. (the “Corporation”), and is based on public information and the Corporation’s confidential information. This Presentation is for information purposes only and is being made
available on a confidential basis solely to enable the prospective “accredited” and other qualified investors authorized by the Corporation to evaluate the securities of the Corporation (the “Securities”). This Presentation does not constitute an offer to sell to any person, or a general offer to the public
of, or the general solicitation from the public of offers to subscribe or purchase, any of the Securities. Any unauthorized use of this Presentation is strictly prohibited. Distribution or copying of this Presentation, in whole or in part in any medium, to any person other than the prospective investor is
prohibited without the prior written consent of the Corporation. The information contained in these slides, the Presentation made to you verbally and any other information provided to you (in writing or otherwise) in connection with the Corporation and its business (the “Presentation Materials”) is
subject to updating, completion, revision, verification and amendment without notice which may result in material changes. The Presentation Materials are not intended to provide financial, tax, legal or accounting advice and do not purport to contain all the information that a prospective investor
may require. Each prospective investor should perform and rely on its own investigation and analysis of the Corporation and the terms of any offering of the Securities, including the merits and risks involved, and are advised to seek their own professional advice on the legal, financial and taxation
consequences of making an investment in the Corporation. The Securities are highly speculative.
No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon the Presentation Materials, and any representation to the contrary is an offence. Neither the Corporation nor any agent of the Corporation makes any representation or warranty, express or
implied, and assumes no responsibility for the accuracy or completeness of the information contained in the Presentation Materials or any other oral or written communication transmitted to prospective investors, and nothing contained in this summary is, or shall be relied upon as, a promise or
representation by the Corporation or any agent of the Corporation as to the past or future performance of the Corporation. The Corporation does not undertake to provide any additional further information or to enter into negotiations regarding the investment opportunity to which these
Presentation Materials relate. The Corporation retains the right, at any time, to terminate any discussions or negotiations with prospective investors. In the event of such termination the Corporation will not be under any obligation to disclose the reasons for such termination nor will they have any
liability to any recipient hereof for any costs whatsoever incurred in the consideration of the information contained in these Presentation Materials.
This presentation contains forward‐looking statements. Often, but not always, forward‐looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or “recurring” or
variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward looking statements contained in this Presentation may include, but are not limited to statements with respect to the successful
execution of the Corporation's business strategy (including its business model. M&A strategy and mission), the use and benefits of its products and services, the Corporation’s favourable position in the market on a go‐forward basis, demographic and market size/trends, forecasts of revenue and
financial projections/growth potential/opportunities, the completion of proposed acquisitions of target companies, the use of proceeds from the sale of the Corporation’s Securities, competitive analysis, proposed synergies, projected milestones, go‐forward management of the Corporation, and
other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance, expected regulatory filings, review and approval dates, construction and start‐up timelines and schedules, and statements related to the continued overall advancement of the
Corporation’s projects. Forward‐looking statements involve known and unknown risks, uncertainties and other factors, such as competition, technological changes, the changing needs of hospitals, the financial condition of Vitalhub’s current and potential customers, foreign currency exchange rates,
as well as general economic conditions, which may cause the actual results, performance or achievements of Vitalhub to be materially different from any future results, performance or achievements expressed or implied by the forward‐looking statements. Actual results and developments are likely
to differ, and may differ materially, from those expressed or implied by the forward‐looking statements contained in this presentation.
There can be no assurance that forward‐looking 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. The forward looking
statements contained in this presentation are made as of the date hereof or the dates specifically referenced in this presentation, where applicable. Except as required by law, the Corporation undertakes no obligation to update publicly or to revise any forward looking statements that are contained
or incorporated in this presentation. All forward looking statements contained in this presentation are expressly qualified by this cautionary statement. Neither the 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 presentation.
TSX.V VHI 3
Company Overview
Software Consolidator Focused on Health & Human Services Digital Solutions
Large, Addressable and Fragmented Market
Sizable Organic Growth Synergistic M&A Growth
TSX.V VHI 4
Company Overview
The Company The Strategy
• High organic growth assets coupled with a targeted M&A strategy • Targeted acquisition of synergistic assets that, taken together, yield a
robust and highly‐valuable suite of solutions
• Strong financial position with high margins, EBITDA positive and
growing Annualized Contract Value (“ACV”) • Organic growth platform achieved through the growing needs of the
sizable and fragmented patient flow and operational visibility market
• Long‐term, high quality customer base across the Hospital,
Community Agency and Mental Health space, with an emphasis on • Solutions targeting patient flow inefficiencies resulting in cost‐savings
end‐to‐end patient flow and operational visibility solutions • Realizing revenue and cost synergies through M&A acquisition strategy
• SaaS‐based, high‐margin products sold organically across the digital • Offshore R&D strategy that cuts costs, increases margins and produces
health marketplace synergized product offerings
• Management team and Board of Directors with proven success • International sales spanning six countries, including the U.S., U.K.,
Canada, Australia, Qatar and Latvia
TSX.V VHI 5
The VitalHub Leadership Team – Management
Dan Matlow President & CEO Vijit Coomara EVP of Development
• 30 years of experience in technology with a focus on • 30 years of experience in Development and Technology
Health IT
• Previously CTO & Co‐Founder at B Sharp
• Previously CEO & Founder at Medworxx
• Track record of building and growing enterprise software
companies
Robert Lazar EVP of Professional Services & Customer Care
• 28 years of experience
Brian Goffenberg, CPA, CA Executive VP & CFO
• Previously CEO & Co‐Founder at B Sharp
• 30 years of experience, multiple CFO roles
• Previously CFO at Medworxx
Niels Tofting EVP of Business Development & Marketing
• 20 years of software experience
• Previously VP Sales at Logibec
TSX.V VHI 6
The VitalHub Leadership Team – Board of Directors
Dan Matlow Roger Dent
• President & CEO Vitalhub Corp. • Chief Executive and Director of
Quinsam Capital Corporation
Francis Shen • Former Portfolio Manager with Matrix Fund Management and
Director of Research for CIBC World Markets
• President of Shen Capital Corporation
• Former Chairman, Co‐Chief Executive Officer and founder of Barry Tissenbaum
Aastra Technologies Ltd.
• Retired fmr. Senior Partner with Ernst & Young
• Currently serves on the Noranda Income Fund Board, and is
Chris Schnarr Chairman of the Audit Committee
• Managing Director of Lorian Group Inc.
Steve Garrington
• Director, Chair of the Audit Committee, and member of the
• Former Director of 3 public companies listed on Canadian,
Governance and Compensation Committees of Canopy
Growth Corporation and Intrinsic 4D Inc. Australian, and UK exchanges
• Former Executive Vice President InterSystems Inc.
TSX.V VHI 7
Canada
Market Size and Opportunity Europe
3 million beds Middle East
across target
regions Australia
$1.5 billion marketplace
Significant opportunity for organic growth
VitalHub’s patient flow platforms currently
$500 per bed per year for a suite of
support an install base representing VitalHub patient flow & operational
50,000 beds across 15 countries visibility modules
TSX.V VHI 8
Timeline: EHR, Case Management (FY16 – FY18)
2016 H2 2017 – H1 2018 H2 2018
• VitalHub Corp. purchased by key • Acquired B‐Sharp Technologies, 24‐ Acquisition of Roxy Software Inc. (closed
former members of the Medworxx person offshore development team, 5 September 2018)
management team in May of 2016. products focusing on mental health; • Revenue of $279,275 recurring
• Completion of the closing of qualifying generating ~CAD $1.4M in recurring revenue of $271,170
transaction and revenue
Nova Scotia Provincial Deal (closed
public offering • Acquired H.I. Next Inc., large US install December 2018)
base, web‐based EHR platform built for
• $20 million in revenue over 10 years
health care providers, tailored to
Behavioral and Mental Health, • Grow to $2.5 million in annual
Community, Primary Care, etc. recurring revenue
• Acquired Clarity Health, Ontario Mental
Health‐based assessments, $200k in
recurring revenue
TSX.V VHI 9
Timeline: Patient Flow & Operational Visibility (FY19)
Strategic Entry into
Patient Flow &
Operational
Visibility Market: Q1 2019 Q4 2019
• Acquisition of
Acquisition of The Oak Group Inc. (closed March 2019): Acquisition of Oculys Health Informatics Inc.:
synergistic assets to
• trailing 12‐month revenue of $847,000, with $751,000 (closed November 2019)
develop end‐to‐end
patient flow and recurring • trailing 12‐month revenue of $2,066,540, with $1,559,177
operational • sales across four countries U.K., Canada, Australia, and recurring
visibility Qatar • 18 hospital customers located across Ontario and
Manitoba
• Well established The Oak Group is a software and service provider, offering its
head‐start in area propriety ‘Making Care Appropriate for Patients’ (“MCAP”) Oculys provides real‐time and predictive operational
of rapid System. MCAP is a robust patient flow solution comprising management systems designed specifically for complex
transformation and clinically‐based criteria sets combined with a software data‐ hospital environments with technology to connect leaders
need, especially gathering and reporting systems. It is used to place and and teams to the pulse of their operations – from the
post‐COVID‐19 identify patients for admission or continued stay at the least Emergency Department wait times to
intensive and most appropriate level of care. Operating Room performance to bed
utilization and to patient flow bottlenecks.
TSX.V VHI 10
Timeline: Patient Flow & Operational Visibility (FY20)
Expansion of
international
Patient Flow Market
and Synergy with Q3 2020 Q3 2020
existing platform: Acquisition of InTouch with health. (closed August 2020): Acquisition of Transforming Systems Ltd. (Announced
• Acquisition of • trailing 12‐month revenue of £3,141,975, with £1,329,198 agreement to acquire August 2020):
synergistic assets recurring • trailing 12‐month revenue of £2,218,192, with £1,880,962
• sales across four countries; UK, Qatar, Australia, Latvia recurring
• Strong references,
with a fifth pending; Canada • Their solutions are currently used at 37 regional NHS
opportunity to
organizations in the UK. Transforming Systems are a “NHS
grow in Canada, Intouch’s “Intouch Patient Journey Platform,” is currently National Innovation Accelerator” with two of their current
continued demand utilized in over 53 National Health Service (“NHS”) Trusts in solutions
for solutions during the UK as well and internationally, and processes over 30
COVID million appointments annually, Intouch helps hospitals and Transforming Systems was established to solve the
private healthcare providers, in the United Kingdom, challenges associated with how to capture, transform, and
Australia, Latvia, and Qatar, increase their organizational provide actionable insights from a wide range of health data
efficiency and deliver an improved patient experience by way to drive behavioural change. Working with their National
of improved communication and information management, Health Services (“NHS”) partners, they deliver award winning
cost reductions and overall quality improvements. The patient flow visibility solutions through their “SHREWD
platform is comprised of three (3) product suites: Patient platform.”
Flow, Clinical hub, and Pre‐operative assessments (under the
TSX.V VHI 11
Synopsis Healthcare banner)Mental Health, Community, and Long‐Term Care
Strategically consolidating current
Acquired Q1 2018 Canadian market (which is serviced by
small, independent vendors) through:
TREAT is a full‐featured health record and client TREAT is focused on client‐ • Acquisitions
management system that supports community centered, outcome‐based case • Displacement via large
agencies across Canada and the United States in management, as well as implementations requiring
a hosted SaaS‐based environment. It is the most transparent and robust reporting. comprehensive solutions
widely‐used product of its kind in Canada.
VitalHub is a
Acquired Q4 2017 Acquired Q1 2018 Acquired Q3 2018
leader in this
Roxy provides “Pirouette” ‐ a web‐based
B Care is a full‐featured electronic health Clarity offers a web‐based interface and data are, with over
software solution comprising case
record that supports small regional hospital entry solution used by leading healthcare management, assessments, and health 150 customers
deployments with an emphasis on mental organizations to perform in‐patient assessments, record and reporting tools designed to currently
health and rehabilitation facilities, offering streamlining resident assessments and reporting help manage programs, workload, and utilizing our 4
functionality that can be used as a primary for complex continuing and long‐term care data more effectively among smaller products
hospital patient information system providers community agencies
TSX.V VHI 12Patient Flow & Operational Visibility Market
Patient flow:
• is the movement of patients through a healthcare facility or amongst different facilities
There is a need for
• involves the medical care, physical resources, and internal systems needed to get patients from connectivity across
the point of admission to the point of discharge while maintaining quality and patient/provider disparate health care
silos for patient flow &
satisfaction.
operational visibility
Operational Visibility: data.
• is the ability to see, in real time, a view of all your operational resources (enabling load
balancing across capacity and demand)
Current covid‐19 pandemic has resulted in healthcare paradigm shift necessitating greater insight into real‐time
patient flow & operational visibility analytics
TSX.V VHI 13TSX.V VHI 14
Patient Flow & Operational Visibility Solutions
prEDict (ED Wait Time Clock) houseOPS
Broadcasts ED performance to the optimizes housekeeping
community and discharge processes leveraging the dashOPS module
dashOPS bedOPS
Integrates key operational data optimizing Optimizes bed management through
the patient journey & utilization intelligent workflows
stayTrack famOPS
Improves communication and discharge Tracks the patient flow journey for
processes families
MCAP
Clinical decision support & utilization
management
TSX.V VHI 15Patient Flow & Operational Visibility Solutions
Synopsis IQ
SHREWD Elective
The complete digital pre‐op assessment platform, from
Whole system visibility of demand,
initial questionnaire to post‐operative outcomes
capacity and ‘waits’ in planned care
Synopsis Home
Enabling patients to complete their pre‐op health
SHREWD Resiliance questionnaire outside the hospital.
Examine whole‐system visibility of
pressure in three seconds iReceptionist
Connect patients and hospital visitors to your remote
SHREWD Action reception team
Broadcasts ED performance to the Wait Time Manager
community and discharge processes A digital dashboard that communicates clinic wait times,
problem areas and potential delays.
SHREWD COVID‐19
Broadcasts ED performance to the Virtual Clinics
community and discharge processes The fully integrated virtual and video consultations
TSX.V VHI 16M&A Strategy
VitalHub’s strategy is to rapidly increase growth and profitability by combining like software companies focused
in the Healthcare IT area
Reduce R&D Spend Consolidate G&A Cross‐Selling Products Optimize S&M Sell Organically
Reduction of R&D Consolidation of Upselling VitalHub Implementation of Develop and sell new
costs by moving finance and mHealth platform effective sales and VitalHub products into
development offshore administration into install base marketing processes large growth markets
with a significantly into a central
reduced wage functional area
structure
TSX.V VHI 17M&A Strategy – Acquisition Targets
Target companies are
Have identified 400
synergistic with annual Combination of cash
companies primarily in
revenues of $1M‐$12M, and stock using the
Canada, UK and Australia
profitable with limited public markets
that are looking for exits
growth, and have not
adopted a mobile strategy
Target 20%‐30% EBITDA
Reduce costs by 20% Purchase companies
with cross‐selling and
through synergistic between
synergistic cost
20% reductions and utilization 20%‐30%
reductions including
1.0‐2.5x 1.0x‐2.5x revenue
of cost‐effective offshore multiple
effective offshore
resources
development work
TSX.V VHI 18M&A Strategy – What We Look For
Target Companies possess these qualities
• Recurring revenue above 60% of total revenue
• Breakeven or profitable
• Owner operated businesses with limited outside investment
• Large component of expense is on research and development vs. sales and marketing
• Little commercialization or sales and marketing expertise
• Significant customer base with minimal retention issues
• Limited or no expansion beyond geographical boundaries creating a large growth barrier
• Ability to upsell to existing install bases of target companies by bringing their product
into a mobile environment
TSX.V VHI 19Revenues – last eight quarters
TSX.V VHI 20Revenues – last eight quarters
Total Revenue Term licenses, maintenance and support Perpetual licenses Services and other % Recurring revenues
TSX.V VHI 21Historical Financial Performance
Historical Adjusted EBITDA (C$ MM)
Adjusted EBITDA Adjusted EBITDA Margin (%)
TSX.V VHI 22Historical Annualized Contract Value (“ACV”)
Historical ACV (C$ MM) ACV ACV Growth %
$16.0
$14.0 $13.6
$12.0
$10.0
$8.0 $7.4
$6.0
$4.5
$4.0
316.7%
$2.0
$1.1
65.6% 82.5%
‐ 0.0%
2017 2018 2019 Q3 2020
TSX.V VHI 23Last eight quarters ACV and quarter on quarter growth in ACV
ACV
Quarter on quarter Growth in ACV (%)
TSX.V VHI 24Capitalization & Shareholder Summary
Capitalization (C$ MM) Shareholder Summary
Share Price C$ $2.900
Basic Shares Outstanding MM 35.1 Management
Plus: Stock Options Outstanding MM 1.6 Control
Plus: Warrants Outstanding MM 2.3 25%
F.D. Shares Outstanding MM 39.0
Basic Market Capitalization C$ MM $101.8
F.D. Market Capitalization C$ MM $113.2
Cash Balance C$ MM $24.0
Loans Payable C$ MM $1.3
Net Cash Position C$ MM $22.7
Stock
Stock Options & Warrants Options Warrants
Amount Outstanding MM 1.6 2.3 Public
Weighted Avg. Exercise Price C$ $1.66 $3.27 Shareholders
75%
Potential Proceeds C$ MM $2.7 $7.5
Source: Public filings and internal company information as at November 19, 2020
TSX.V VHI 25Closed a $15.3M bought deal offering on March 17, 2020
• Vitalhub Corp. has closed its previously announced bought‐deal offering pursuant to a press release dated Feb. 21, 2020. A total of
8,506,300 common shares of Vitalhub were sold at a price of $1.80 per common share for total gross proceeds of approximately
$15.3‐million. The offering was conducted by a syndicate of underwriters led by Cormark Securities Inc. and including Beacon
Securities Ltd. and Canaccord Genuity Corp. The offering included 1,006,300 common shares issued pursuant to the exercise of a
portion of the overallotment option granted to the underwriters. The common shares were qualified for distribution by a short‐
form prospectus in the provinces of Ontario, British Columbia and Alberta.
• In connection with the offering, the company paid the underwriters a cash commission of $839,363.40 and issued to the
underwriters 228,750 broker warrants. Each broker warrant entitles the underwriters to purchase a common share at an exercise
price of $2.10 until March 17, 2022.
• The net proceeds of the offering will be used for growth initiatives, working capital and general corporate purposes. The company's
growth initiative is focused on the acquisition of thirdparty enterprises in the health care industry which provide synergistic
opportunities for the company.
TSX.V VHI 26Closed a $17M bought deal offering on November 17, 2020
• Vitalhub Corp. has closed its previously announced bought deal offering pursuant to a press release dated Oct.
26, 2020. A total of 5,860,775 common shares of Vitalhub were sold at a price of $2.90 per common share for
total gross proceeds of approximately $17‐million. The offering was conducted by a syndicate of underwriters
led by Cormark Securities Inc. and including Canaccord Genuity Corp., Beacon Securities Ltd., Eight Capital and
Paradigm Capital Inc. The offering included 688,275 common shares issued pursuant to the exercise of a
portion of the overallotment option granted to the underwriters. The common shares were qualified for
distribution by a short‐form prospectus in the provinces of Ontario, British Columbia and Alberta.
• The net proceeds of the offering will be used for growth initiatives, working capital and general corporate
purposes. The company's growth initiative is focused on the acquisition of third party enterprises in the health
care industry, which provide synergistic opportunities for the company.
TSX.V VHI 27Comparables
TSX.V VHI 28Nova Scotia Announcement (Closed Dec. 2018)
The Nova Scotia Department of Community Services has signed a five‐year agreement
with VitalHub, with options to extend for a total of five additional years, to license
VitalHub’s TREAT client management software to support the Department of
Community Services (DCS) transformation following the issuance of a Request For
Proposal (RFP) for a digitally enabled Collaborative Case Management Solution.
• Complete transformation of DCS’s entire software package
• 2,000 Internal employee users and 20,000 clients that will use the system
• Material transaction resulting in a committed contract value of $20 million in revenue over
10 years
• Will grow to $2.5 million in annual recurring revenue
TSX.V VHI 29Offshore Development Hub: VitalHub Innovations Lab
Forty+ member offshore development team located in Sri Lanka
Colombo, Sri Lanka
Strong Healthcare domain expertise, with experience in building state‐of‐
the‐art healthcare applications to support digital health products across
hospitals and community care settings
Characteristics
• In operation since 2007
• Team of 44 developers
44 Member Offshore
• Average tenure of 4 years Development Team
TSX.V VHI 30Investment Highlights ‐ Summary
Large Addressable Market across Targeted Digital Health Solutions
1 • Focused on the Mental Health, Long term Care, and Community Agency sectors
• Patient Flow and Operational Visibility solutions portfolio launched with acquisition of
Oak Group (Q1 2019
History of Successful M&A Execution
2 • 8 acquisitions completed with ~400 potential targets currently identified
• Target cost reduction of 20% and EBITDA increase of 20% to 30%
Strong ACV Growth with High‐Quality Customers
VitalHub Corp. is 3 • M&A targets have recurring revenue >60% of total revenue
• Recent contract win – Nova Scotia has licensed VitalHub’s client management software
being traded on the
Seasoned Management Team with Extensive Healthcare IT Experience
TSX Venture Exchange 4 • Combined 200+ years of experience in healthcare and technology
under VHI • History of founding and operating Healthcare IT companies (e.g. Medworxx, B Sharp)
Low‐Cost Development Hub
5 • Operates offshore R&D in Sri Lanka with a significantly reduced cost structure
• 40 member off‐shore development team
TSX.V VHI 31Appendix B: Additional Information
Medworxx History
• International Healthcare IT company that was publicly traded on the TSX.V
• Unique Patient Flow solutions originating from use at Canadian hospitals
• Solutions are used by over 70% of hospitals across Canada
• Grew internationally to over $8 million in revenue across five countries
• Share price grew from 5 cents in 2008 to 60 cents in 2015 (CAGR 30% beds under license)
• Sold to Aptean, a subsidiary of Vista Equity Partners, in October 2015 for a valuation
of $20 million
Canada United States Australia France U.K
TSX.V VHI 33New Strategic Investors
VitalHub Corp. completed a non‐brokered private placement of units with the former
founders and management team of Aastra Technologies Ltd.
• The offering was completed at a price 16 cents per unit for gross proceeds of $3.3 million, and a total of 20,625,000 units issued (at
the time – a consolidation of share capital on a 10 for 1 basis occurred in January 2020).
• The investors comprise:
• Francis Shen, founder, former chairman and co‐chief executive officer of Aastra;
• Tony Shen, former president, chief operating officer and co‐CEO of Aastra;
• Allan Brett, former chief financial officer at Aastra and current CFO at Descartes Systems Group Inc.;
• John Tobia, general counsel and current vice‐president of merger and acquisition at Aastra and general counsel at Sangoma
Technologies Corp.
TSX.V VHI 34Investor Presentation
TSX.V VHI
Dan Matlow, President & CEO dan.matlow@vitalhub.com
Brian Goffenberg, CFO brian.Goffenberg@vitalhub.comYou can also read
