Well Health Technologies (TSX: WELL) is returning to the trough just days after reporting its third quarter financial results. The company last night announced that they will be conducting a $65.0 million bought deal offering of convertible debentures.
The offering is to be lead by Eight Capital and Scotiabank, with the offering to consist of convertible senior unsecured debentures. The debt is to bear interest at a rate of 5.50% per annum, while having a conversion price of $9.23 per share. Maturity is slated to be December 31, 2026.
An over-allotment option has also been granted, enabling the financing to be increased by up to $5.0 million.
The financing is said to have a lead order from a “large Canadian pension fund manager,” however specifics on the size of the lead order were not provided.
Proceeds from the offering are to be used for growth initiatives, which includes debt repayment, potential acquisitions, working capital and general corporate purposes.
The offering is marked to close on November 25.
As of September 30, Well Health reportedly had $38.7 million in cash on the books, in addition to $32.7 million in restricted cash.
Well Health last traded at $6.59 on the TSX.
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