October 2018 - Volume 15 - Issue 4 | Thursday October 18, 2018

Reliq Health Technologies – A Cannabis Investment Opportunity

In the August issue, we highlighted Reliq Health Technologies (RHT.V) (RQHTF) as a cannabis investment opportunity and since then, the company has been nothing short of an execution story.

Reliq Health has been a very profitable opportunity. Since August 1st, the shares have rallied more than 350%. Although this rally has been significant, we continue to view Reliq as an attractive investment opportunity at current levels.
About Reliq Health Technologies
Reliq Health Technologies is a healthcare technology company that specializes in developing innovative, secure mobile software solutions for the multi-billion-dollar community healthcare market.
Reliq also has a partnership with a licensed Canadian cannabis producer, Invictus MD Strategies (IMH.V) (IVITF: OTC) to capture high value data on strain, dose, mode of administration, symptom relief and side effects from medical marijuana users.
A Free Cash Flow Story
Over the last two months, Reliq has significantly advanced its story and the company is quickly becoming a free cash flow story.
In mid-August, Reliq announced that its remote patient monitoring and telemedicine solution with Paz Home Health LLC in Texas went live. Reliq already has more than 1,000 paid subscribers and this number continues to grow at better-than-expected rates.
A few weeks later, Reliq announced another milestone after it went live with its remote patient monitoring, care coordination and telemedicine platform with Rio Grande Valley Health Alliance, which is made up of 15 independent practices and has more than 30,000 registered patients. Once these platforms are at full deployment, Reliq will be generating over $26 million in recurring annual revenue.
Last month, Reliq received the first payment of $200,000 from NextGen Applications (total value of the contract is $1.22 million). When you combine the growing number of paid subscribers, with the recent payment, and the new contracts, Reliq is quickly becoming a major free cash flow story.
A Stock with Several Significant Catalyst for Growth
Reliq has several pilot programs with leading hospitals and networks in North America and Europe. If the company closes at least one of its pilot programs, we expect to see significant share price appreciation.
We are very bullish on this part of the story and believe the potential revenue from these deals is underappreciated by the street. Reliq is currently working with:
1. Sioux Lookout – Meno Ya Win Health Center (SLMHC) - SLMHC is a fully accredited 60-bed hospital and a 20-bed extended care facility that provides health services to 30,000 people living in 28 First Nations communities and the four municipalities.
2. Hamilton Health Sciences (HHS) - HHS is a family of seven unique hospitals, a cancer center and an urgent care center serving more than 2.3 million residents in and around the city of Hamilton, Ontario. HHS treats over 50,000 patients and performs over 28,000 surgeries each year.
3. The National Health Service (NHS) - NHS is the publicly funded healthcare system for England. It is the largest and the oldest single-payer healthcare system in the world, providing coverage for over 54 million United Kingdom residents.
4. Sacred Heart - The health system is northwest Florida's leading provider of high-quality health care to children and adults. Sacred Heart admits more than 30,000 patients annually and has more than 4,000 employees.
5. The Feldman Institute - The Louisiana institute is an interventional pain management clinic and surgical center, and is a regional center that serves a large group of patients within Louisiana and its surroundings. The Feldman institute performs thousands of pain management surgeries annually.
Increases Size of Private Placement Due to Demand
Last week, Reliq Healthsignificantly strengthened its balance sheet after the technology firm reported an engagement agreement with Canaccord Genuity and Gravitas Securities to act as co-lead agents on a $4 million brokered private placement offering of up to 10,000,000 units at $0.40 each.
This raise generated massive interest and Reliq increased the size of the offering to $5 million. This financing will provide Reliq with enough capital to execute on its current pipeline.
The company plans to use the capital for customer acquisition opportunities and to open new accounts, for working capital purposes, and for accretive investment and acquisition opportunities.
A Stock Investors Need to Watch
Reliq has expanded its reach and geographic diversity over the last year and the company has secured pilot programs with hospitals, organizations and cities in the United States, the United Kingdom, and Canada. We are favorable on the recent rally as it has been supported by continued execution on all levels and are bullish on the long-term opportunity.
When you look at the recent rally, many factors stand out. However, one of the most eye popping metrics is the change in trading volume. Prior to the August Paz announcement, Reliq was trading less than 200,000 shares a day on average. Over the last month, this number has increased to almost 800,000 per day.
Much of this increase is on the buy side and the improved liquidity has been beneficial to shareholders and is a testament to the quality of the rally. We remain bullish on Reliq and believe it is a stock that investors need to watch.

Michael Berger is the Founder/President of Technical 420 LLC and may be reached at (305) 458-9982, or Michael.berger@technical420.com.

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