MCI Onehealth, a Toronto-based healthtech company, has closed $30 million CAD for its initial public offering (IPO). The company’s shares began trading Wednesday on the Toronto Stock Exchange.
MCI Onehealth is one of several Canadian healthtech companies to raise funding over the last year.
MCI Onehealth owns 25 medical clinics in Ontario and Alberta and claims to serve more than 850,000 patients annually. The company is working on several software products, including an artificial intelligence-enabled technology aimed to increase the rate of detection for chronic disease and improve overall clinical standards.
The IPO consists of six million Class A Subordinate Voting Shares at a price of $5 per offered share. Underwriters on the offering included Canaccord Genuity Corp, which acted as lead underwriter, as well as Echelon Wealth Partners Stifel Nicolaus Canada, TD Securities, Eight Capital, Haywood Securities, and Clarus Securities.
MCI Onehealth granted the underwriters an over-allotment option to purchase up to an additional 900,000 shares for additional gross proceeds of up to $4.5 million.
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The company initially filed its preliminary prospectus in mid-December. According to that prospectus, MCI Onehealth’s revenue declined 20 percent in the first nine months of last year, as the number of walk-in clinic visits dropped significantly due to the COVID-19 pandemic. MCI Onehealth now also offers virtual care consultations.
MCI Onehealth is not the only digital health company to IPO in the last year. At the end of December, Toronto-based digital mental health treatment startup MindBeacon closed its own IPO. Since the onset of the COVID-19 pandemic, the demand for virtual healthcare has led to many scaling opportunities for Canadian healthtech startups.
Maple, a telehealth company, raised $75 million from Loblaws in the fall. Other Canadian startups in the space, such as OnCall Health, Inkblot Therapy, and Verto Health either raised funding or saw notable growth last year.