Over the last month, Reliq Health Technologies (RHT.V) (RQHTF) has continued to trend higher but the shares have come off their highs.
We are favorable on Reliq and continue to see upside to current levels after the company closed a $10 million private placement. This raise is significant for Reliq as it will provide the company with enough capital to execute on its current pipeline.
Reliq plans to use the capital for customer acquisition opportunities and to open new accounts, for working capital purposes, and for accretive investment and acquisition opportunities.
Company Fundamental Continue to Improve
Reliq Health has been nothing short of an execution story and the company’s fundamentals continues to improve. Over the last year, Reliq has expanded its reach and geographic diversity and has secured pilot programs with hospitals, organizations and cities in the United States, the United Kingdom, and Canada.
We are favorable on the recent rally as it has been supported by continued execution on all levels and are bullish on the long-term opportunity. Reliq has several event-driven catalysts that make the company a very attractive opportunity. We expect to see continued growth over the next year and investors need to keep an eye on this stock.
An Emerging Growth Story
In late November, Reliq announced that it has over 4,000 paid subscribers using its iUGO Care chronic care management, representing more than $200,000 of monthly recurring revenue. Since then, the company has announced new agreements which will support continued subscriber growth.
In late December, Reliq announced an agreement with B Golden Care Services, LLC in McAllen, Texas to implement the iUGO Care chronic care management platform for its 1,000 complex continuing care patients. Reliq expects to start onboarding patients towards the end of the first quarter of 2018.Last year, Reliq entered the Texas telemedicine market after it secured a $1.22 million contract with San Antonio based NextGen Applications LLC. Under the agreement, Reliq will develop a white-labelled version of its platform to proactively support the health and wellness of the city’s 1.4 million residents. This agreement was a first-of-its-kind for Reliq.
Going forward, we expect to see the company secure several deals that are like the one with the NextGen, however, we expect these contracts to cost several million more. We are favorable on Reliq’s multi-faceted growth strategy and the several high-profile pilots in progress with leading hospitals and healthcare networks in North America and Europe.
A Stock to Watch
Reliq has come off its monthly highs and the shares are trending higher after the closing of the $10 million private placement. The closing of the financing brought more than capital to the healthcare technology company.
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