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Back when it was dragging its ass along the road at $0.10 a share, we told you – again and again – that Reliq Health Technologies (RHT.V) was doing actual business with a big fat upside.

Did you believe us? Nope. You were all, “but lithium is a thing!” and “cobalt cobalt cobalt”, which is fine, but man did you miss a jump.

RHT does telemedicine; that is, instead of expecting Aunt Milly with her gummy hip to limp into the doctor’s office so she can check in on Milly after her operation, RHT hooks the old girl’s home up with sensors, wearables, and all sorts of ways to check that she’s taking her meds, she’s moving about as normal, her vitals are okay, etc.

This allows the doc to check in more often, in quicker time, and allows her to see more patients, making the doc way more productive, profitable, and helping the patient to get help as soon as it’s needed, rather than when she’s got her next scheduled checkup.

Reliq’s iUGO Care digital health solution provides high-quality virtual care in the community by creating a “virtual hospital ward” within the patient’s home, automatically collecting vital signs and encouraging and tracking medication adherence. iUGO Care’s unique interactive voice technology provides patients with audible alerts and reminders to take their medications, collect their vitals using Bluetooth-enabled monitoring devices and perform prescribed rehab or fitness activities. iUGO Care’s two-way voice hub provides voice-activated access to patient education content, empowering patients and family members to pro-actively manage complex chronic conditions. Reliq’s iUGO Care cloud platform instantly alerts the clinical care team if a patient develops key warning signs, allowing clinicians to intervene before a health crisis occurs, preventing costly and disruptive hospital readmissions and ER visits.

This is obviously a great thing, and most of the western world’s healthcare system needs this.

Well, once the stock hit $0.60 or so I heard the same stuff from you guys that I heard before it launched upward;

“Is it overvalued?”

“Will those pilot programs actually turn into deals?”

“How can blockchain fit into it?”

Today, the company answered some of those questions:

They’ve now got 4,000 paid monthly subscribers (they had 2,000 two weeks ago), which brings in $200k per month in recurring revenue, meaning the company will hit their financial breakeven in December.

This is massive, because it means everything from here on in is pure profit – and the expectation is there’s going to be a similar level of patient ramp up going forward.

“We are excited to announce that we now have over 4,000 patients live on our iUGO Care platform,” said Dr. Lisa Crossley, chief executive officer of Reliq Health. “The onboarding of patients is starting to accelerate as we move forward with our roll out to over 40,000 patients with the two current contracts in Texas.

What this means is, there’s ten times the current dollar value per month coming down the pipe, just with the existing contracts. But there are more pilot programs being done, including one with a region of the UK National Health Service (NHS), which is the government medical program.

A deal there, though likely to take some time to work through the halls of power, would load this thing up in ways most impressive.

Currently, RHT has a market cap of $70 million, so a lot of that 40k patient number is already baked into the share price – but not all. $24m in revs per year, with much of that pure profit, would make this an interesting takeover target, and the CEO has been through a couple of medical sector exits before.

RHT isn’t a client company of ours, but it was once, and we’re happy to have helped investors find them. From our first conversation with Dr Lisa Crossley, it was clear she was building something real, and that’s playing out now.

At the time of writing, RHT was up 12% on the news.

— Chris Parry

 

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

Chris Parry

Chris Parry is a two-time Webster Award winning journalist who has been featured in the pages of The Vancouver Sun, The Province, National Post, Spin, Hollywood Reporter, FHM, Stuff, and Stockhouse. He was the first business journalist to identify and focus on the move to marijuana as an investment opportunity, and started Equity.Guru as a venue for honest, no punches pulled coverage of the North American public markets.

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