Well Health To Raise $65.0 Million Via Convertible Debt
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.
Information for this briefing was found via Sedar and the companies mentioned. 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
