WELL Health Announces Closing of $23M Private Placement with Group of Investors Led by Mr. Li Ka-shing
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Vancouver, B.C., September 30, 2020 - WELL Health Technologies Corp. (TSX: WELL) (the “Company” or “WELL”), a company focused on consolidating and modernizing clinical and digital assets within the primary healthcare sector, is pleased to announce that it has closed its non-brokered private placement (the “Offering”) of 4,821,803 common shares (each, a “Share”) in the capital of the Company, at a price per share of $4.77, for aggregate gross proceeds of $23,000,000, as previously announced in the Company’s news release dated September 1, 2020. The subscribers to the Offering were a group of investors led by Hong Kong business leader Mr. Li Ka-shing.
The net proceeds of the Offering are expected to be primarily used to fund and support the proposed acquisition of a majority of the issued and outstanding shares of Circle Medical Technologies, Inc. (“Circle Medical”) as well as general working capital. Circle Medical is a US technology leader and innovator in the delivery of quality telehealth and in-person healthcare experiences.
“We sincerely appreciate the continued support of Mr. Li Ka-shing and other investors that participated in this round,” said Hamed Shahbazi, Founder and CEO of WELL Health Technologies. “These funds will go to great use in not only acquiring a majority stake in Circle Medical but also helping fund a compelling pipeline of other highly accretive acquisitions that further WELL’s efforts to empower doctors and patients with tools and capabilities that improve health outcomes.”
There was no insider participation or finder’s fees paid in connection with the Offering. The Shares issued under the Offering are subject to a statutory hold period expiring four months and one day from the date of closing.
None of the securities sold in connection with the Offering will be registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
WELL HEALTH TECHNOLOGIES CORP.
Per: “Hamed Shahbazi”
Chief Executive Officer, Chairman and Director
WELL is an omni-channel digital health company whose overarching objective is to empower doctors to provide the best and most advanced care possible while leveraging the latest trends in digital health. As such, WELL owns and operates 20 primary healthcare clinics, is Canada’s third largest digital Electronic Medical Records (EMR) supplier serving over 2,000 medical clinics, operates a leading national telehealth service and is a provider of digital health and cybersecurity related technology solutions. WELL is an acquisitive company that follows a disciplined and accretive capital allocation strategy. WELL is publicly traded on the Toronto Stock Exchange under the symbol “WELL”. WELL was recognized as a TSX Venture 50 Company three years in a row in 2018, 2019 and 2020. To access the Company’s telehealth service, visit: virtualclinics.ca and for corporate information, visit: www.well.company.
Certain statements in this news release related to the Company are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements in this news release include statements: regarding the use of proceeds; and regarding WELL’s status as a leading provider in Telehealth services in the United States. Actual results and future events could differ materially from those anticipated in such information for any number of risks as disclosed in WELL’s periodic reports and the risk that WELL does not use all or a portion of the use of proceeds as planned to fund and support the acquisition of a majority of the issued and outstanding shares of Circle Medical Technologies, Inc. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
Pardeep S. Sangha
Vice President Corporate Strategy and Investor Relations
WELL Health Technologies Corp.