Reliq Health Technologies is now an acquisition target, StoneCastle Investment says

The good times are not over for Reliq Health Technologies (Reliq Health Technologies Stock Quote, Chart, News: TSXV:RHT), says Bruce Campbell of StoneCastle Investment Management, who says a buyout is around the corner.

Mobile health care tech company Reliq Health has been on a magic run over the past nine months, with the stock rising from $0.20 last September to a high of $2.62 by late February. Credit that trajectory to the company’s success in picking up clients and partnerships and growing its patient number, says Campbell.

“[CEO Dr. Lisa Crossley] has done an excellent job of telling the market what she’s going to do and then delivering on that,” Campbell told BNN yesterday. “She said that they expected to have 30,000 patients online by the end of this year at US$50.00 a month and she’s actually said that there’s a potential that it could go higher than that.”

Last week, the company announced an expansion of its contract with Paz Home Health LLC in Texas, which added 5,000 new patients and increased the contract’s value to over US$9 million annually.

“We are excited to announce that as a result of their implementation of the iUGO Care remote patient monitoring platform, our client Paz Home Health has been accepted as a Superior HealthPlan Approved Provider for in-home telemonitoring,” said Dr. Crossley in a press release. “As a result of becoming an Approved Provider, Paz has increased their registered Medicare/Medicaid homecare clients to over 15,000 patients across Southern Texas.”

Campbell says that Reliq’s progress means that a buyout is inevitable, although exactly when that’ll happen is unclear. “As far as when it gets taken out, I would think that at some point in time it’s going to become a critical mass,” says Campbell. “People are going to be looking at the cash flow that it’s creating and say, ‘We think this thing is really on a track,’ and it gets taken out.”

“Is that number 100,000 patients that they have on board or 200,000?” says Campbell. “I don’t know, but as long as they continue to grow and to continue to accelerate the rate of growth for patient acquisition, we’re happy to hold it.”