MCI Onehealth raises $30 million going public

TORONTO – MCI Onehealth Technologies Inc. announced the successful closing of its initial public offering of 6 million shares at a price of $5.00 for gross proceeds of $30 million. The shares trade on the Toronto Stock Exchange under the symbol DRDR.

MCI Onehealth is the latest in a series of health and health-technology companies that have raised funds by going public on the stock exchanges. Earlier this month, Think Research announced its own offering on the TSX Venture Exchange, while MindBeacon, a provider of tele-psychology services went public late last year.

MCI Onehealth’s offering was made through a syndicate of underwriters led by Canaccord Genuity Corp., as lead underwriter and sole bookrunner, and including Echelon Wealth Partners Inc., Stifel Nicolaus Canada Inc., TD Securities Inc., Eight Capital, Haywood Securities Inc. and Clarus Securities Inc.

MCI Onehealth was represented by Fasken Martineau DuMoulin LLP and the Underwriters were represented by Borden Ladner Gervais LLP.

For its part, MCI Onehealth is focused on empowering patients and doctors with advanced technologies to increase access, improve quality, and reduce the cost of 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.

According to an article in the Globe and Mail, the majority of MCI’s revenue still comes from in-person healthcare at clinics in Calgary and the Greater Toronto Area, which operate under the brand name MCI The Doctor’s Office. This line of business took a significant hit during the pandemic, as walk-in visits dropped approximately 40 percent year-over-year.

The company’s overall revenue was down 20 percent in the first nine months of 2020, according to its preliminary prospectus.

At the same time, MCI grew its telehealth offerings. MCI doctors conducted 200,000 virtual appointments in the first nine months of the year, up from having “a very small telehealth and virtual care patient base entering 2020,” the prospectus said.

The company is looking to build on this momentum, and has branded itself as “technology enabled, primary care.”

“While not all healthcare can be delivered virtually, a significant portion certainly can,” MCI’s chief executive, Alexander Dobranowski (pictured), and two co-founders, Sven Grail and George Christodoulou, wrote in a letter filed in the prospectus.

The company is also hoping to monetize its patient data by bundling medical information into large anonymized data sets and selling subscriptions to the data. Potential customers include drug makers, medical device manufacturers and university researchers, the prospectus said.

The company, formerly called Altima Healthcare Canada Inc., was formed by Dr. Grail and Dr. Christodoulou, both dentists, who acquired a network of health clinics in Toronto and Calgary in 2012. The pair had previously co-founded the Altima Dental Clinic chain, which operates more than 100 dental clinics in six provinces, according to MCI’s prospectus.