OCOEE, Fla. - iCoreConnect Inc. (NASDAQ: ICCT), recognized for its cloud-based software and technology solutions, has announced the acquisition of assets from the Healthcare Circle of Excellence (HCofE). This move is aimed at bolstering the company's position in providing resources and solutions to support the independence and prosperity of local healthcare practices in the U.S.
The acquisition, which was completed today, includes the launch of a new Healthcare Circle of Excellence division and a website. These new ventures are designed to identify and address the critical needs of healthcare practitioners and practices by offering a broad range of vetted solutions and resources. The founders of HCofE will continue their involvement, focusing on expanding healthcare community partnerships nationwide and enriching the website's content.
Robert McDermott, President and CEO of iCoreConnect, expressed optimism about the acquisition, stating it represents a significant step in understanding and meeting the evolving needs of medical and dental practices. The company's goal is to empower these practices with innovative solutions that foster financial success.
The acquisition is also notable for the integration of certain former HCofE members into the iCoreConnect team. These individuals shared their enthusiasm for leveraging iCoreConnect's technologies and expertise to support local healthcare communities successfully.
iCoreConnect, with this strategic acquisition, continues to pursue setting new standards in healthcare financial management, aiming to drive improved performance and profitability for healthcare practices.
The information reported is based on a press release statement, and no further details about the financial terms of the acquisition were disclosed.
In other recent news, iCoreConnect has made significant strategic moves to streamline its business model and improve compliance with Nasdaq rules. The company has divested its Managed Service Provider Division to The 20, LLC, to focus on its core Software as a Service (SaaS) offerings. This move is expected to enhance operational efficiency and financial performance by reallocating resources to higher-margin SaaS products. The capital generated from this sale will be used to reduce existing debt and invest further in core business areas.
Additionally, iCoreConnect shareholders approved key proposals, including the issuance of up to 11,203,700 shares of common stock and the issuance of shares upon conversion of an amended convertible note. The company also made changes to its board of directors, appointing Wayne Kalish and Yvonne Hyland. These developments are part of the company's efforts to regain compliance with Nasdaq listing rules.
Moreover, iCoreConnect has amended its Prepaid Forward Purchase Agreement with RiverNorth SPAC Arbitrage Fund, deferring the conversion of preferred stock into common stock until February 25, 2025. The maturity dates of two convertible promissory notes were extended, and a new one was issued with a principal amount of $397,622. Lastly, the company expanded its operations into Tennessee, securing an endorsement from the Tennessee Dental Association for seven of its software solutions. These are the recent developments in iCoreConnect's operations.
InvestingPro Insights
As iCoreConnect Inc. (NASDAQ: ICCT) expands its footprint in the healthcare solutions sector with the acquisition of Healthcare Circle of Excellence assets, it's crucial to examine the company's financial health and market performance.
According to InvestingPro data, iCoreConnect's revenue growth has been impressive, with a 34.56% increase over the last twelve months as of Q2 2024, and an even more substantial 66.36% growth in the most recent quarter. This robust top-line expansion aligns well with the company's strategic moves to broaden its service offerings and market reach.
However, investors should note that despite strong revenue growth, iCoreConnect is currently operating at a loss. The company's operating income margin stands at -122.41%, indicating significant challenges in translating revenue growth into profitability. This is further reflected in an InvestingPro Tip which points out that the company is not profitable over the last twelve months.
Another InvestingPro Tip highlights that iCoreConnect is quickly burning through cash. This is particularly relevant in light of the recent acquisition, as it may put additional strain on the company's financial resources. Potential investors should carefully consider how this cash burn rate might impact the company's ability to fully capitalize on its new assets and growth initiatives.
For those seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for iCoreConnect, providing a deeper understanding of the company's financial position and market dynamics. These insights could be invaluable for investors looking to assess the long-term implications of iCoreConnect's strategic moves in the healthcare technology space.
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