WELL Health Announces $70 Million Bought Deal Financing

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

VANCOUVER, British Columbia, Oct. 01, 2020 (GLOBE NEWSWIRE) -- WELL Health Technologies Corp. (TSX: WELL) (“WELL” or the “Company”) is pleased to announce that it has entered into an agreement pursuant to which Eight Capital and Stifel GMP, as co-lead underwriters and joint bookrunners, together with a syndicate of underwriters (collectively, the “Underwriters”), will purchase 10,372,000 common shares of the Company (the “Shares”), on a “bought deal” basis pursuant to the filing of a short form prospectus, subject to all required regulatory approvals, at a price per Share of $6.75 (the “Issue Price”) for gross proceeds of $70,011,000 (the “Offering”). 

The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 15% of the Shares at the Issue Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional approximately $10,500,000 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be approximately $80,500,000.

The Company intends to use the net proceeds of the Offering to fund future acquisitions and investments in the field of digital healthcare including but not limited to tech-enabled primary and specialty clinics, Electronic Medical Records or EMR software, virtual care platforms, cybersecurity, and other assets, and for working capital and general corporate purposes.

The closing date of the Offering is scheduled to be on or about October 22, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.

This press 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 state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.