HEALWELL AI Closes Upsized $20 Million Bought Deal Offering

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, May 22, 2024 (GLOBE NEWSWIRE) -- HEALWELL AI INC. (“HEALWELL” or the “Company”) (TSX: AIDX) is pleased to announce today that it has closed its previously announced “bought deal” private placement offering and issued 14,815,000 units of the Company (the “Units”) at a price of $1.35 per Unit, for aggregate gross proceeds of $20,000,250 (the “Offering”).

Dr. Alexander Dobranowski, CEO of HEALWELL commented, “In addition to strengthening the Company’s balance sheet, the completion of the Offering positions the Company well to carry out the remainder of its 2024 growth initiatives. This milestone marks not just a financial achievement but a significant step towards realizing our mission to improve healthcare and save lives through the early identification and detection of disease.”

Each Unit is comprised of one Class A subordinate voting share of the Company (a “Share”) and one-half of one Share purchase warrant (each whole warrant, a “Warrant”) of the Company. Each Warrant entitles the holder thereof to purchase one additional Share at an exercise price of $1.80 for a period of two (2) years following the closing of the Offering.

The Offering was conducted on a “bought deal” basis by Clarus Securities Inc. and Eight Capital, as co-lead underwriters, together with Beacon Securities Limited, Canaccord Genuity Corp., Stifel Nicolaus Canada Inc., Ventum Financial Corp., Cormark Securities Inc., Raymond James Ltd. and Maxim Group LLC, as underwriters (collectively, the “Underwriters”).

In connection with the Offering, the Underwriters received a cash commission equal to 6.0% of the gross proceeds of the Offering (the “Cash Commission”) and that number of non-transferable broker warrants (the “Broker Warrants”) as is equal to 6.0% of the aggregate number of Units sold under the Offering. Each Broker Warrant is exercisable to acquire one Share at a price of $1.35 per Share for a period two (2) years after the closing of the Offering. Each of the Cash Commission paid and Brokers Warrants issued to the Underwriters was reduced to 3% with respect to subscribers identified on the Company’s president’s list, which president’s list was in the amount of $13,600,035.