DRWN – Potential
Acquisition Candidate HIPAA Compliant Blockchain Collaboration with
Oracle Corporation
Miami, FL -- April 3, 2018
-- InvestorsHub NewsWire -- EmergingGrowth.com, a leading
independent small cap media portal with an extensive history of
providing unparalleled content for the Emerging Growth markets and
companies, reports on Quantum Medical (OTC
Pink: DRWN).
Highlights:
First HIPAA Compliant
Blockchain Technology
Collaboration with Oracle
(NYSE:
ORCL)
Potential Acquisition
Candidate
Ricky Bernard, President of Quantum
Medical commented: “With Oracle’s collaboration with
development and their Blockchain Cloud Service, we can accelerate
revenue, create new revenue streams, and reduce cost and risk by
securely extending medical blockchain business applications and
processes while speeding up transactions across our partner
ecosystem.”
DRWN may
not be at these levels much longer.
See the Press Release and more on Quantum
Medical (OTC
Pink: DRWN) on EmergingGrowth.com
http://emerginggrowth.com/?s=DRWN
The U.S. healthcare sector is estimated to have spent $100 billion on IT in 2017,
underlining the increasingly central role that tech plays in the
healthcare sector. Though the increased digitization of healthcare
has its merits—such as improved data management—it also exposes
clinics, medical suppliers, health insurers and other players in
the sector to the growing threat of cybercrime.
Healthcare networks hold massive volumes of accurate, comprehensive
and up-to-date financial, medical and personal information of
millions of Americans. As a result, healthcare data is
significantly richer in value than data from retail and financial
services, making the sector more attractive to hackers. According
to a report on Reuters, medical
data is worth 10 times more on the black market than credit card
data.
Back in 2014, Community Health Systems Inc. (NYSE: CYH ), one of the largest
providers of general hospital healthcare services in the U.S., was
infiltrated by alleged Chinese hackers in a breach that compromised
4.5 million medical records.
Although CYH hired cybersecurity experts from
a FireEye (NASDAQ: FEYE) affiliated company to look
into the matter, the bigger question that went unanswered was
whether smaller healthcare players with leaner cybersecurity
budgets silently suffer more damaging breaches. This question is
difficult to answer with precision, but Ricky Bernard, the CEO of
Quantum Medical Transport (OTC
PINK: DRWN) believes the threat of data breaches in healthcare
is steadily increasing for big and small players alike.
“Now more than ever, there is a need to pioneer more effective and
lasting solutions that enhance data protection in healthcare,”
added Mr. Bernard, who spoke exclusively to EmergingGrowth.com.
Quantum Medical Transport is a profitable medical technology and
transportation public company based in Texas. The company grossed
$1.31 million in annual operating revenue as of December 31, 2017,
compared to $1.2 million the same period the previous year. “Over
the past decade, our revenues have historically been in the
$1.0-$1.3 million range” said Bernard. The company also recently
closed its acquisition of United
Ambulance LLC, strengthening its position in the medical
transportation market.
However, Bernard says that the company’s recent successful
acquisition and healthy topline aren’t its biggest accomplishments
yet—rather, its bold foray into medical blockchain technology
is.
Medical blockchain is a game-changer
The company recently embarked on developing a medical blockchain
platform called QuantH, which aims to provide a subscription based
secure encryption data sharing (Health Information Data Exchange)
service to the $3 trillion healthcare sector. The company is
currently raising $50 million in
capital through the sale of tokens to accredited investors via a
private placement.
QuantH will be the first HIPAA compliant medical blockchain
platform. The Health Insurance Portability and Accountability Act
(HIPAA) sets the standard for protecting sensitive patient data.
HIPAA compliance will therefore give QuantH mainstream acceptance
in the healthcare sector, something Bernard believes will
significantly boost subscriptions to QuantH.
“We are pioneering blockchain-as-a-service in the healthcare sector
and expect QuantH to enhance data protection and introduce new
levels of efficiency in healthcare data management,” he noted. “In
view of our HIPAA compliance, and the pressing need for more
effective ways to secure healthcare data, we expect positive market
reception,” he continued.
The company already has a robust B2B network of healthcare sector
players in Texas that it regularly engages with technology in the
course of offering its transport services. This increases the
likelihood that it will successfully upsell its QuantH subscription
service to existing players in its Texas network, giving it
sufficient momentum to later fan out to other geographies across
the country.
“I am optimistic about the number of subscriptions as demand for a
more secure way of sharing and managing healthcare data is at an
all-time high. Medical blockchain has been identified as a game
changer, but there has been no HIPAA compliant blockchain to date.
We are breaking new ground with our HIPAA compliant blockchain,
something that competitively positions us to gain market
leadership,” said Bernard.
Medical blockchain is viewed as a game-changer in the healthcare
sector due to its ability to enhance data protection in a way
cybersecurity companies have not been able to do. Blockchain
decentralizes data storage, making the data available to all
players in the health system in a timely manner. This streamlines
data sharing, lowers data management costs and improves overall
service delivery.
Likewise, data on blockchain cannot be changed once it has been
recorded. This boosts transparency, which is an important
ingredient in healthcare. Most importantly, data on blockchain is
encrypted and the real identities of parties on the ledger are
replaced with unique identifiers, eliminating the risk of linking
information on the ledger back to individuals such as patients and
institutions such as clinics.
3 key reasons why blockchain is ideal for healthcare
data protection
Owing to its merits, blockchain is gaining more acceptance in the
healthcare sector. According to a recent study by IBM, 56%
of surveyed healthcare executives have solid plans to implement a
commercial blockchain solution by 2020. DRWN is therefore an early
mover in a fast-growing space.
An article in the MIT Technology
review notes that decentralized databases (blockchain) promise
to revolutionize medical records, but not until the healthcare
industry buys into the idea. HIPAA compliance is what will allow
QuantH to get that much needed buy-in from the healthcare industry,
underlining its massive commercial viability. This commercial
viability is perhaps the core reason why QuantH has already aroused
the interest of some of the largest tech companies on the planet,
despite still being in the development stage.
Largest tech companies interested
DRWN announced in the final week of
March that it had been invited by Oracle Corporation (NYSE:
ORCL) to participate in the Oracle
Blockchain Cloud Platform Beta program to support the development
QuantH. This signals that the company’s blockchain technology is
gaining traction—so much so that Oracle believes it has the
potential to become commercially viable and is actively supporting
its development.
It is instructive to note that Oracle’s cloud-based integration
platform is the largest provider to banks and supply chain vendors
for the transfer of information. It can easily handle the large
amounts of data involved in the transmission of medical
records.
The support from Oracle is the latest indicator yet that QuantH has
tremendous commercial potential—a factor that will substantially
increase potential returns for accredited investors who participate
in the $50 million Initial Coin Offering (ICO). Commercial
viability also heightens the chance that, after going live, QuantH
will sign up a significant number of subscribers across the health
sector.
“I am confident of two things: first, based on the
amazing momentum we have garnered during the development phase, we
will be able to raise the $50 million through the ICO. Second, upon
commercial launch, we will be able to steadily expand our
subscription base for our blockchain-as-a-service platform,” said
Bernard.
According to the 100 page prospectus for the ICO, which is available on the company’s
website, annual subscription revenue for the
blockchain-as-a-service platform could hit $9 million in 2018 and
grow consistently at a double digit rate to $16.13 million in 2022.
Through this period, annual cost of sales will not exceed $150,000
in any given year, delivering incredible returns for ICO investors
and the company at large. These projections are based upon a
successful $50 million capital raise in the ICO, which is plausible
given the traction that QuantH is gaining, including support from
big players such as Oracle.
Financial projections for QuantH; Source: ICO
Prospectus
According to Bernard, the successful rollout of QuantH will secure
the company income that will not only support organic growth across
the whole business with a view to growing current profitability,
but also support mergers and acquisitions in the electronic health
records (EHR) space.
“We see a lot of synergies between our new strategic direction in
medical tech and existing companies in EHR. Once income from our
QuantH blockchain-as-a-service platform is sustainable, we will
explore mergers and acquisitions in the EHR space,” he said.
The outlook for DRWN is bullish in light of the increasing
likelihood that QuantH will have a successful commercial rollout
that will help power the company’s broader objective of
consolidating its position in medical tech through both organic
growth and acquisitions of EHR players.
Tables could turn
However, there is a likelihood that the tables could turn. Although
the company is exploring acquisitions in the EHR space, it could
actually end up being the one acquired by a larger player. The
hunter could become the hunted.
DRWN is a potential acquisition target for two reasons. Firstly,
because of the commercial viability of its HIPAA compliant
blockchain technology, especially now that Oracle is supporting its
development. Secondly, because of its track record as a revenue
generating and profitable company with an established track record
in the healthcare sector that spans over a decade.
To expound on the second point, it is instructive to note that most
of the companies currently getting into blockchain are completely
new entrants. These are development stage companies with no sales
and little-known top executives. While some are legitimate, others
have been flagged down by regulators, who have warned investors
that they lack solid fundamentals and could be using blockchain as
nothing more than a buzzword. These are not the qualities that
typically make a company an acquisition target.
In contrast, DRWN is well established, profitable and properly
governed—going by its historical performance and publicly available
audited results. The fact that it is participating in the Oracle
Blockchain Cloud Platform Beta program further demonstrates that it
has both the in-house talent and polished corporate reputation
needed to be an acquisition target. It makes greater sense for
large caps interested in medical blockchain to buy DRWN than the
dozens of untested players mushrooming in the blockchain space. –
Further, it’s easier to acquire the technology than to reinvent
it.
Conclusion
When a new technology such as blockchain gains mainstream
acceptance, the historical market entry strategy by large caps has
predominantly been the acquisition of promising emerging growth
companies that have existing familiarity with the technology.
This positions DRWN very competitively as it puts it on the radar
of deal hungry large caps, especially now that has an existing
working relationship with Oracle. Based on this working
relationship, Oracle could very well end up being a potential
suitor in future.
Alternatively, the support from Oracle could also serve to whet the
appetite of other big players such as IBM (NYSE: IBM) and General Electric (NYSE:
GE), which both have vested
interests in blockchain and healthcare, respectively. IBM has
produced a tremendous body of research on blockchain and currently
has several blockchain patents under its belt, while GE has
previously said that it is looking “very actively” into blockchain in
light of its potential to protect the integrity of medical
data.
DRWN’s current market cap of less than $5 million grossly
underrepresents the company’s underlying value. It is a potential
acquisition target pioneering a HIPAA compliant medical blockchain
platform that is commercially viable. It also has healthy
financials and is generating $1 million plus in sales without its
game-changing block-chain-as-a-service platform. Overall, sales
could grow fivefold in the first of year of the service. Once all
these factors are priced into the stock, the uptrend could be
historic.
DRWN may
not be at these levels much longer.
See the Press Release and more on Quantum
Medical (OTC Pink: DRWN) on EmergingGrowth.com
http://emerginggrowth.com/?s=DRWN
Other Companies in the news and featured on
EmergingGrowth.com
Creative Medical Technology, Inc.
Shares of Creative Medical Technology, Inc. (OTCQB:
CELZ) seem to have seen their day. Shares have been
declining since its initial, almost 600% run last week. We’ll
see how its product fairs at the International Urology Conference
in May. It may be its only saving grace.
Have a look at Quantum Medical, (OTC
Pink: DRWN). Now working in collaboration with
Oracle.
Quantum Medical, Inc.’s (OTC Pink: DRWN) QuantH,
its own proprietary medical blockchain technology is currently in
development and will launch as the first HIPAA (Health Insurance
Portability and Accountability Act) compliant blockchain
technology.
Therapy Cells, Inc.
Stop sign company Therapy Cells, Inc. (OTC:
TCEL) went from dormant to almost a billion shares in 6.5
hours. There has been no news or financial disclosures posted
on OTC Markets since early 2015. Shares traded up 500%
brefore giving back ½ at the close. If a deal is not
announced soon, it may very well, just go back to sleep.
Keep an eye on Quantum Medical, (OTC
Pink: DRWN). Their announcement of a collaboration with
Oracle could be just what the doctor ordered.
Worldflix, Inc.
Shares of Worldflix, Inc. (OTC
Pink: WRFX) have been trading well since its announcement of
securing a cryptocurrency platform. Moreover, shares have
up-ticked each of the last 8 sessions despite market
conditions. Candlesticks yesterday however indicated its
first downturn. Might be time to take some funds off the
table and enjoy the fruits of your 350% gains.
We could be looking at much larger
returns for Quantum Medical, (OTC
Pink: DRWN) with Oracle Corporation’s (NYSE: ORCL)
collaboration with development of their HIPAA compliant QuanH,
HIPAA Compliant Medical Blockchain Technology?
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