Ft. Lauderdale, Florida, Dec. 16, 2019 (GLOBE NEWSWIRE) -- eWellness Healthcare Corporation (“EWLL”, the Company”), a provider of the state of the art PHZIO platform for the physical therapy (“PT”) and telehealth markets announced today that its FY2020 revenue ramp focuses on the current 16 provider agreements, of which 14 are currently based in Canada with our partner company Bistromatics, Inc. Based upon our current provider agreements and anticipating a very low initial utilization rate of approximately 0.5% of an employee base of approximately 6 million individuals, we anticipate approximately 30,000 new patients or 2,500 new patients per month for FY2020. Moving into FY2021 and beyond the utilization rates could move from 0.5% to over 3%. Assuming a low reimbursement rate of US$300.00 per patient for an average of 6 patient treatments (1 initial evaluation and 5 monitored therapeutic exercise sessions). Thus, we anticipate averaging US$50.00 per session in gross revenue and providing approximately 180,000 individual digital treatments. Therefore, based upon the assumption that this business develops as anticipated, gross sales would equal approximately US$9 million in FY 2020 for both Bistromatics, Inc. and EWLL. Based upon our revenue sharing agreement between EWLL and Bistromatics, Inc., we could expect approximately US$1.5 million in EWLL net earnings in FY2020. This forecast is based on existing provider agreements only and does not include any additional prospective provider agreements in negotiation or that may be executed in 2020 and thereafter.
Secondly, EWLL plans to file a Registration Statement on Form S-1 offering up to 2 million Units at an offering price of $25 per Unit, each consisting of: (i) one share of 13% Cumulative Perpetual Preferred Stock having a stated value of $25 per share (the “Cumulative Preferred Stock”); and (ii) five common stock purchase warrants (the “Warrants”), each exercisable for five years from the effective date of the initial closing of the Registration Statement (the “Effective Date”). The Cumulative Preferred Stock and the shares of Common Stock underlying the Warrants will be registered in the Registration Statement. The first three years of dividends at 13% per annum will be escrowed from the $25 offering price, representing $9.75 per share, which will result in net proceeds to the Company of $15.25 per share. These dividends shall be paid monthly from an escrow account to be established at IFEB Bank (the “Escrow Agent”). The Company can redeem the Cumulative Preferred Stock after three years at the $25 per share stated value or at any time after the 36-month anniversary of the Effective Date. Starting in year four, if not redeemed, the Company will pay the $3.25 per share yearly dividends in twelve equal monthly installments and, if any dividends are not paid, they will be cumulative.
- The Cumulative Preferred Stock will be initially listed on the OTCQX and, as such. the first closing will require gross proceeds of $4 million from the sale of 160,000 Units. To qualify for listing, the OTCQX requires 50 holders of the shares of Cumulative Preferred Stock and the Warrants that will also be listed.
- The Company will pay any participating broker/dealer commissions equal to 7% in cash and 7% in warrants for the sale of the Unit at $25 per Unit. (i.e. on first closing of 160,00 Units, participating broker/dealers would be issued 11,200 Warrants)
- The Company will conduct closings, subsequent to the first closing, on a weekly basis for the same $25 per Unit while those shares of the Cumulative Preferred Stock and Warrants are trading on the OTCQX.
Thirdly, the Company announced a December 9, 2019 (the “Record Date”) a stock dividend for all non-affiliated common stock holders as of the Record Date (“Non-Affiliated Holders”), pursuant to which the Company will issue to the Non-Affiliated Holders a 20% dividend in the form of one new share of common stock for each five shares of common stock owned by such Non-Affiliated Holders. The Company’s officers, directors and control shareholders will not be issued any of the shares of common stock in the stock dividend. The distribution of this dividend is anticipated to be made on or about December 31st 2019.
Following implementation of the 20% stock dividend, the Company’ plans to make application with FINRA for a reverse split of its outstanding common stock on a one for fifty (1:50) basis, on or about December 31, 2019, as authorized by the Company’s Definitive Information Statement filed with the SEC on December 5, 2019.
Lastly, on December 10, 2019, the Company moved its corporate offices to Ft. Lauderdale, Florida. The primary purpose for the move was in order to be closer to our prospective, large-scale Third-Party Administrator (TPA), as well as corporate and government agency customers. Also, in connection with the move, the Company’s CEO, Darwin Fogt, and CFO, David Markowski, are now domiciled in Ft. Lauderdale. In addition, the Company also has software development, system operations, marketing and sales offices in Ottawa, Canada. The Company’s headcount has been increased and, at present, now has a total of approximately 20 team members plus multiple senior financial, marketing and sales advisors to help manage its growth.
eWellness Healthcare Corporation (EWLL) is the first physical therapy telehealth company to offer real-time distance monitored assessments and treatments. Our business model is to have large-scale employers use our MSK 360 and/or our PHZIO platform as a fully PT monitored corporate MSK wellness program. The Company’s MSK 360 and PHZIO home physical therapy assessment and exercise platform has been designed to disrupt the $30 billion physical therapy market, the $4 billion MSK market and the $8 billion corporate wellness industry. PHZIO re-defines the way MSK physical therapy can be delivered. PHZIO is the first real-time remote monitored 1-to-many MSK physical therapy platform for home use.
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Safe Harbor Statement
This news release includes certain information that may constitute forward-looking statements. Forward-looking statements are typically identified by terminology such as “could,” “may,” “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “proposed,” “planned,” “potential” and similar expressions, or are those, which, by their nature, refer to future events. All statements, other than statements of historical fact, included herein, including statements about eWellness’ beliefs and expectations, are forward-looking statements. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Although eWellness believes that such statements are reasonable, it can give no assurance that such forward-looking information will prove to be accurate. eWellness cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors. Accordingly, due to the risks, uncertainties and assumptions inherent in forward-looking information, readers and prospective investors in the Company’s securities should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof and is subject to change. The Company assumes no obligation to revise or update forward-looking information to reflect new circumstances, whether as a result of new information, future events or otherwise, except as required by law.
For additional information on eWellness Healthcare Corporation and its PHZIO telehealth products please contact Mr. Darwin Fogt, CEO: 1-855-470-1700