It is not uncommon for stocks to record notable gain despite there being no news and such a state of affairs is now being observed with regards to the eWellness Healthcare Corporation (OTCMKTS:EWLL).
The eWellness Healthcare stock surged yesterday on the back of high trading volumes but there was no material news about the company. In this sort of situation, it is perhaps a better idea for investors to consider having a look at some of the previous developments in order to get a better idea about the company and its business.
The company operates an e-commerce platform named PHIZIO that is dedicated to physical therapy. In other words, it helps patients in getting physical therapy delivered straight to their homes through the platform operated by eWellness Healthcare.
In May last year, the Lord Global Corporation announced that it inked a letter of intent with eWellness Healthcare that was focussed on a collaborative marketing effort and financing. The centerpiece of the deal between the two companies was the PHIZIO platform from eWellness Healthcare. Lord Global revealed that the PHIZIO platform is going to be marketed strongly in order to enhance its acceptance among physical therapists who work in the United States.
At this point, there are in excess of 200,000 such therapists in the United States and most of them work independently. Lord Global is targeting this particular market. Lord Global is going to conduct its operations through its subsidiary company 27 Health Inc.
As per the terms of the collaboration, eWellness agreed to pay 27 Health significant marketing fees for bringing new physical therapists as well as their clients to the PHIZIO platform. However, that is not all. In addition to that, as much as a quarter of the revenues generated by eWellness are going to be paid out to 27 Health Inc. It was a significant deal that had been signed by the company and one that could help the company in expanding its presence considerably.
Last year in April, the company had made another announcement that might have come as a boost for many prospective investors. The company announced that it was on track to treat as many as 300,000 patients through the course of the year 2020.
The reasoning behind such a potentially strong performance was also understandable. The coronavirus pandemic had severely restricted the movement of patients as well as physical therapists, which is why eWellness Healthcare experienced a surge in demand last year. Considering the latest rally in the stock, it might be a good idea for investors to continue to keep an eye on the news regarding the company.
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