Well Health Secures $10.0 Million Convertible Debt Financing

Well Health Technologies (TSX: WELL) announced this morning that they have secured a convertible debenture financing from a single institutional investor. The financing will see the company issue an aggregate of $10.0 million in unsecured convertible debentures, which rank equally with currently outstanding debentures.

The debentures accrue interest at a rate of 10% per annum, and mature in five years on March 31, 2025. At the holders option, they may be converted to common shares of the company at a price per share of $2.30. Well Health also has the option to force the conversion of the debt should the volume weighted average trading price of the equity exceed $2.80 for a period of 20 days.

Funds from the financing will be utilized to fund future growth initiatives of the firm, including growing the current virtual and physical client portfolio, the acquisition of electronic medical record (EMR) assets, as well as to make key investments in digital healthcare.

Given the current market backdrop and the fact that a substantial majority of our last convertible note has already been successfully exercised, we felt it was prudent to raise additional capital at this time to support our organic and acquisitive growth initiatives in 2020.

Hamed Shahbazi, Chairman and CEO of WELL

Closing of the financing is expected to occur on March 11, 2020.

Well Health Technologies last traded at $1.55 on the TSX.


Information for this briefing was found via Sedar and Well Health Technologies. The author has no securities or affiliations related to the discussed organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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