EWLL’s PHIZIO platform is the only publicly traded, telemedicine platform dedicated for physical rehabilitation and Lord Global will receive 25% of EWLL’s revenue stream
NEW YORK, May 05, 2020 (GLOBE NEWSWIRE) — EWLL’s PHIZO e-commerce platform is the only dedicated physical therapy platform for the delivery of online physical therapy direct to a patient’s home, office or other remote location. Due to the recent COVID-19 pandemic, the Federal government has eliminated interstate licensing requirements for physical therapists as well as allowing CMS to reimburse physical therapists under the Medicare and Medicaid programs. Prior to the recent Federal government rule amendments, it has been publicly reported that the US physical therapy industry was in excess of $35 Billion during the most recent fiscal year and that the US physical therapy market is forecast to grow at 6.2 % per year and reach in excess of $45 billion by 2023 . While virtually all of this revenue growth has occurred in physical therapy clinics, It is LRDG’s belief that EWLL, as the pioneer in developing a HIPAA compliant, dedicated platform that allows physical therapists to deliver a reimbursed visit via telemedicine directly to their patients in out-of-office locations such as the home, will grow substantially. In the past month, EWLL has seen the average daily use of its platform grow from 1 visit per day to over 1,000 visits per day, which growth has been accelerating. Given the recent Federal guideline changes, LRDG anticipates this growth to continue to grow, perhaps exponentially. Presently the “shelter-at-home” rules throughout the country have meant that physical therapists and their clients have had their services disrupted, notwithstanding the lessening of some statewide and local jurisdictions in less populated jurisdictions.
LRDG, through its 27 Health Inc. subsidiary, believes that the PHIZIO platform will be aggressively marketed and should be able to receive increasing market acceptance by the over 200,000 physical therapists in the United States. The vast majority of these therapists are independent contractors, which is the principal target market for Lord Global Corporation.
Upon execution of a definitive agreement, 27 Health Inc. will receive a significant marketing fee from EWLL for identifying physical therapists and their clients to use the PHIZIO platform and, in addition, 27 Health Inc. will receive 25% of EWLL’s net revenue. Lord Global Inc. shall provide 50% of all financing it receives subsequent to the completion of the definitive agreement. Lord Global will also issue EWLL a convertible preferred stock registered under the Act, the shares of which are convertible into a total 2,000,000 shares of LRDG common stock, subject to a beneficial ownership limitation or a 4.99% blocker. Reference is made to the Form 8-K being filed by LRDG.
Joseph Frontiere, CEO of Lord Global Corporation, said “We are extremely excited to market this unique, first-of-its-kind, telemedicine platform for physical therapists. Despite the extraordinary devastation to the nation’s health, well-being and the U.S. economy caused by COVID-19 pandemic, EWLL’s telemedicine platform is perfectly situated to service persons in need of physical therapy who are unable to leave their homes. We understand that approximately 80% of all physical therapy sessions can be performed online. The PHIZIO platform is unique in its ability to allow physical therapists to monitor up to 30 client/patients online per session. This HIPAA compliant advantage will allow the physical therapists to drastically increase their revenue, compared to the traditional therapist who had been previously limited by regulations, to a one to one setting. Physical therapists can now, for the first time, treat their client/patients from their home or elsewhere, while the client/patients are in their own homes and have the physical therapists receive insurance reimbursement. We are already seeing a dramatic increase in interest from independent physical therapists utilize the PHIZIO platform. Subject to the definitive agreement, LRDG will be marketing the platform for $4.99 per treatment to the physical therapist.
We believe the physical therapist can receive up to $50 per patient, per treatment. If the physical therapist using PHZIO, on average, schedules 5 patients at a time, they can receive up to $250 per session, which is significantly more than they can presently earn at a clinic. We also believe that people have been neglecting their physical therapy during the COVID-19 crisis, as almost all non-COVID-19 health services have been postponed by state and local governments.”
Douglas Maclellan, Chairman eWellness, stated “This strategic LOI with Lord Global, subject to a definitive agreement, will allow us to access a significant financing opportunity while we simultaneously focus on marketing to physical therapists, the majority of whom are independent contractors. We have successfully concentrated on penetrating the workman’s compensation insurance industry and have seen our business dramatically grow due to the change in regulations at the Federal level. We firmly believe that it is time for EWLL to focus on the over 200,000 physical therapists in the United States. As a result of the COVID-19 crisis, many if not most of these therapists are not working. Our platform will allow them to get back to work and again continue generating revenues while they work from home. Once physical therapists and their clients have experienced the benefits of physical therapy via telemedicine, that is now insurance reimbursable, we believe this market share to EWLL will be significant and perhaps even permanent. The financing component of the letter of intent, subject to a definitive agreement, will enable EWLL, within what we believe will be a relatively short, permit EWLL to fully eliminate its reliance upon convertible debt financing as well as achieve a significant sales increase.”
EWLL has indicated to LRDG that a private market valuation, done by a major accounting firm’s consulting arm, indicates that the PHIZIO platform has a potential $150 million valuation. This would indicate that LRDG’s 25% interest in EWLL’s revenue, should add up to $40 million to our market valuation. Currently there are only 1,100,000 shares of LRDG common stock outstanding.
Safe Harbor Statement
This news release includes certain information that may constitute forward-looking statements. Forward-looking statements are typically identified by terminology such as “could,” “may,” “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “proposed,” “planned,” “potential” and similar expressions, or are those, which, by their nature, refer to future events. All statements, other than statements of historical fact, included herein, including statements about Lord Global Corporations’ beliefs and expectations, are forward-looking statements. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Although Lord Global Corporation believes that such statements are reasonable, it can give no assurance that such forward-looking information will prove to be accurate. Lord Global Corporation cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors. Accordingly, due to the risks, uncertainties and assumptions inherent in forward-looking information, readers and prospective investors in the Company’s securities should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof and is subject to change. The Company assumes no obligation to revise or update forward-looking information to reflect new circumstances, whether as a result of new information, future events or otherwise, except as required by law.
CFO, Lord Global Corporation
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