WELL Health to Secure Major Stake in HEALWELL AI Amid Strategic Acquisitions

WELL Health's Strategic Acquisition of HEALWELL AI

WELL Health Technologies Corp. is poised to transform its market position with its recent announcement regarding the acquisition of a controlling interest in HEALWELL AI. This strategic move is set to coincide with HEALWELL's own proposed acquisition of Orion Health Holdings Limited, an innovative healthcare technology firm based in Auckland, New Zealand. This dual acquisition strategy illustrates WELL's commitment to enhancing digital healthcare solutions by leveraging advanced artificial intelligence (AI) to improve patient care.

The Details of the Acquisition

As part of this initiative, WELL intends to amend and exercise its call right to obtain a majority stake in HEALWELL AI. This acquisition will involve WELL acquiring approximately 30.8 million Class A Subordinate Voting Shares and an equal amount of Class B Multiple Voting Shares of HEALWELL. In its comprehensive investment strategy, WELL has also exercised its outstanding share purchase warrants and converted convertible debentures, adding around 43,282,363 additional Class A Subordinate Voting Shares of HEALWELL to its holdings.

Post-acquisition, WELL is expected to hold about 37% of the economic interest and approximately 69% of the voting power in HEALWELL. This acquisition is particularly notable as it grants WELL control over HEALWELL under International Financial Reporting Standards (IFRS), meaning it will consolidate HEALWELL's financial performance into its reports starting from April 1, 2025. The outlook for this integration is promising, with WELL forecasting that HEALWELL could contribute around $160 million in revenue and positive EBITDA to its financials in the coming year.

A Synergistic Approach

Hamed Shahbazi, the CEO and Founder of WELL, emphasized the strategic significance of this acquisition. Shahbazi noted, “The exercise of the call right represents a key milestone for WELL's strategic investment in HEALWELL.” He anticipates that by merging WELL's operational scale and HEALWELL's cutting-edge AI capabilities, alongside Orion’s expertise in global health systems, they will be well equipped to deliver innovative solutions in patient care.

This acquisition aligns seamlessly with HEALWELL's acquisition of Orion Health, which was detailed in a share purchase agreement signed in December 2024. The acquisition of Orion Health is aimed at expanding HEALWELL’s reach and enhancing its technological capabilities, allowing them to serve a broader array of public sector clients globally.

The Importance of Orion Health

Orion Health, a global player with an impressive footprint across various healthcare domains, supports nearly 400 employees across 11 countries. Its solutions are designed for both the public and private sectors, significantly improving digital health interoperability. The company's anticipated revenue generation surpasses $100 million, predominantly from subscription licenses and services. By integrating HEALWELL's advanced AI technology with Orion's established infrastructure, the combined entity will target the enhancement of healthcare outcomes at a global scale.

Future Implications and Board Structure

WELL’s strategic approach doesn’t stop at acquiring shares; they also plan to exert influence over HEALWELL's governance. Following the acquisition, WELL intends to utilize its rights to nominate a majority of HEALWELL's board members. This move underscores WELL's strategic planning to ensure its interests are maintained as they look to expand and innovate within the healthcare technology landscape.

As they merge their resources and expertise, WELL, HEALWELL, and Orion Health are poised to create a more efficient ecosystem for healthcare delivery, ultimately enhancing patient experiences.

In conclusion, WELL Health’s acquisition of HEALWELL AI, coupled with the strategic integration of Orion Health, marks a significant advancement in the digital healthcare sector. It paves the way for improved health outcomes through the deployment of advanced AI technologies, ultimately aiming to foster a healthier future for patients globally.