WELL Health Technologies (TSX: WELL) this morning announced yet another financing that is to be conducted by the firm. This go around, the company will be raising $70.0 million through a bought deal financing, lead by Eight Capital and Stifel GMP.
The bought deal financing will see a total of 10,372,000 common shares of the company sold at a price of $6.75 per share, with no warrant being offered in the financing. An over allotment option also exists, enabling the underwriters to sell an additional 15% of shares upon exercise for up to thirty days following the close of the financing. If exercised, this option would bring the total financing to $80.5 million.
Proceeds from the financing are to be used to fund future acquisitions, as well as the firms investment in digital healthcare. To this end, the company included a wide range of potential investments or acquisitions, including “tech-enabled” primary and specialty clinics, electronic medical record software, cybersecurity, virtual care platforms or other assets. Funds will also be used for working capital and general corporate purposes.
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The financing is expected to close by October 22, 2020. It follows an announcement from just yesterday, wherein the firm released that it had closed a $23 million private placement financing at $4.77 per unit. Notably, the company utilized a different wire service than is typical to announce this mornings financing.
WELL Health last traded at $7.21 on the TSX.
Information for this briefing was found via Sedar and WELL Health Technologies Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
