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WELL Health Bolsters Position with Key Acquisition

In a significant move in the healthcare sector, WELL Health Technologies Corp. (TSX: WELL) (OTCQX: WHTCF) has announced its intention to exercise its call right and acquire a majority controlling interest in HEALWELL AI. This strategic action is set to coincide with HEALWELL’s acquisition of Orion Health, effectively reshaping the landscape of healthcare technology with advanced AI capabilities.

WELL Health Plans Major Acquisition

Set for April 1, 2025, WELL Health’s strategic decision aims to amend its previous agreements and acquire 30.8 million Class A and Class B shares of HEALWELL AI. This move will not only give WELL Health a significant stake in HEALWELL but also consolidate financial results under WELL, making HEALWELL a subsidiary from the acquisition date forward. WELL aims to enhance its position in the market by integrating HEALWELL’s AI-driven healthcare solutions into its extensive network.

Financial Impacts and Share Details

Following the completion of these transactions, WELL Health anticipates an approximate 37% economic interest and 69% voting interest in HEALWELL on a non-diluted basis. On a fully-diluted basis, these figures slightly adjust to around 29% and 60%, respectively. WELL also reported beneficial exercises of share purchase warrants and conversion of debentures leading to additional acquisitions of HEALWELL’s Class A Subordinate Voting Shares, further solidifying its influential position within HEALWELL. The financial outlook post-acquisition forecasts approximately $160 million in revenue with positive adjusted EBITDA from HEALWELL’s operations added to WELL’s consolidated financials over the next year.

Future Outlook for WELL and HEALWELL

The integration of these entities is poised to produce substantial revenue synergies and operational efficiencies, particularly by harnessing HEALWELL’s AI expertise and Orion Health’s established global healthcare systems. HEALWELL, soon to be augmented with Orion Health’s capabilities, is expected to bolster WELL’s offerings in the AI healthcare market, enhancing diagnostics and patient care on a grand scale. Collectively, WELL and HEALWELL are setting the stage for significant growth and value creation in the healthcare technology sector.

In conclusion, WELL Health Technologies’ decision to exercise its acquisition rights over HEALWELL, in conjunction with HEALWELL’s purchase of Orion Health, marks a transformative phase for the company. This strategic expansion is designed to maximize WELL’s influence in the healthcare technology space and drive innovative solutions that improve patient outcomes. With these forward-thinking adjustments, WELL is well-positioned to leverage emerging opportunities in AI-enhanced healthcare services, promising an exciting future for its stakeholders.

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