Toronto private equity firm CPS Capital has agreed to pay four cents per share. If the transaction doesn’t close, CloudMD said it doesn’t expect an alternative and its shares will be worthless because it’s going to run out of money, the company said in a release. (The Logic)

Talking point: The proposed transaction marks a steep decline in value for CloudMD’s shares, which peaked at $3.43 each in October 2020 when CloudMD’s virtual health-care services were in high demand. The firm has been conducting a strategic review since July 2023. CloudMD used some of its previous wealth for an acquisition spree—most notably buying psychotherapy platform MindBeacon for $116 million in 2021—but by late 2022 it was selling assets and slashing the valuations of multiple divisions. In April last year, CloudMD expected that the $24.1 million in cash it had on hand would be enough to see it through. CPS’s buyout agreement includes a bridge loan of $1 million so CloudMD can keep operating until the deal closes.