- WELL forms a new business unit to consolidate its Canadian
outpatient clinic businesses into a highly integrated national
'bricks and clicks' clinic platform reflecting 'hybrid' care. The
new business unit will include WELL's Primary Care, Allied Health,
and MyHealth Specialized Care businesses and supports almost 1,300
- WELL has expanded its $200
million senior secured credit facilities(1) led
by Royal Bank of Canada
("RBC") and supported by a syndicate of lenders to encompass
the Canadian Clinics Business Unit and extended it until 2026,
providing the Company with additional access to credit to help grow
WELL's fleet of outpatient clinic locations.
- WELL is ramping up its growth in new clinics. In the last
couple of weeks, WELL has expanded its clinical presence with two
new clinics: one each in Ontario
and British Columbia and has
established a strong pipeline of new prospects.
VANCOUVER, BC, July 14,
2022 /PRNewswire/ - WELL Health Technologies
Corp. (TSX: WELL) (OTCQX: WHTCF) (the "Company" or
"WELL"), a practitioner focussed digital health company
positively impacting health outcomes by leveraging technology to
empower healthcare practitioners and their patients globally, is
pleased to announce it has formed a new legal entity called WELL
Health Canada Clinics Inc. ("Canadian Clinics Business
Unit") to house its Canadian omni-channel clinical businesses.
These businesses include the Company's previous Primary Care,
Allied Care and MyHealth Specialized Care business units.
The Canadian Clinics Business Unit represents WELL's owned and
operated fleet of Omni-Channel outpatient clinics leveraging WELL's
highly integrated 'hybrid' brick and mortar and virtual service
capabilities and includes the Company's primary care, specialized
care, allied health, and diagnostics services but does not include
the Company's TiaHealth.com service which is part of WELL's Virtual
Services division. This business unit supports almost 1,300
healthcare practitioners who provide 1.87 million patient visits
annually on a run-rate basis(2); over 40% of these
patients are seen remotely via one of WELL's virtual or telehealth
platforms, with the remainder treated in one of WELL's 81 Canadian
clinics(3). This business is also expected to
generate revenues exceeding $160
million with double digit operating Adjusted
EBITDA(4) margins. Driven by WELL's consolidation and
capital allocation efforts, this business has been experiencing
organic growth rates approaching double digit percentage growth.
The Canadian Clinics business unit is a key pillar in WELL's
mission to empower practitioners.
Dr. Michael Frankel, WELL's Chief
Medical Officer, said "This consolidation of our Canadian clinics
business provides WELL with the proper foundation to become a
national health system providing the very best in highly integrated
'bricks and clicks' care. We are excited to provide
healthcare practitioners with a compelling home where they are
supported with exceptional front and back-office support and
technology solutions so they can provide critical care to their
patients. We intend on further developing our services from
coast to coast."
WELL will look to continue its consolidation and modernization
of healthcare resources in Canada
powered by its organic growth and with the help of its funding
partners RBC, the Bank of Montreal, HSBC Bank Canada, The
Toronto-Dominion Bank, ICICI Bank Canada and Laurentian Bank of
Canada (collectively the
"Lenders"). RBC is the Lead Arranger, Sole Bookrunner,
and Administrative Agent on the financing. The Lenders have
amended previous MyHealth credit facilities to include the newly
formed Canadian Clinics Business Unit, as well as provided an
extension of their credit commitments for an incremental year,
extending the maturity to June 2026.
The facilities are currently priced at an interest rate which
is equivalent to SOFR/CDOR plus 1.25% to 3.25%(5),
depending on the debt to Adjusted EBITDA ratio of the consolidated
results for the Canadian Clinics Business Unit.
WELL's goal is to continue to grow Canada's largest network of outpatient clinics
using a combination of greenfield sites and new acquisitions.
WELL is pleased to confirm that it has added a primary care clinic
in Vancouver to its network and a
new greenfield haemorrhoid treatment center in Hamilton, Ontario. The Company's combined
investment to add these two clinics to the network is less than
$100k. The combined annual revenues
of the two clinics are expected to exceed $2
million in their first year under WELL and be profitable.
The Company's recently announced acquisition of Calgary based InLiv, a premium provider of
healthcare services in the Province of Alberta, will also be part of the Canadian
Clinics Business Unit upon closing and is expected to exceed
$7 million per year in revenues with
85% of such revenue reflecting recurring membership revenue.
"We are thrilled to have the continued support of our banking
partners and to announce the amendments to our existing Canadian
credit facilities" said Hamed
Shahbazi, CEO and Founder of WELL. "Our ability to
expand our Canadian credit agreement with favourable terms in the
present challenging macroeconomic environment is not only a
testament to the fantastic support we are receiving from our
banking partners but also the strength of WELL's outpatient clinic
business. The updated credit facilities allow us to more
efficiently deploy capital towards our strategic priorities and
generate more shareholder value by improving our revenue and
Adjusted EBITDA per share metrics."
WELL's objective is to continue to grow its Canadian Clinics
Business Unit both organically and inorganically and continue to
demonstrate market leadership as the country's first pan-Canadian
clinical network with a highly integrated network of tech-enabled
outpatient healthcare clinics across the country.
- The credit facilities amended are referenced in the press
release dated 8 June 2021. The facilities include commitments
for C$140 million senior secured
credit facilities and an additional C$60
million uncommitted accordion feature.
- Run-rate patient visits is calculated by annualizing
May 2022 patient visits figures.
- The 81 clinics include the primary care clinic in Vancouver and the haemorrhoid treatment centre
in Hamilton. It does not include InLiv as the transaction has
- Non-GAAP financial measure. Earnings before interest,
taxes, depreciation, and amortization ("EBITDA") and Adjusted
EBITDA should not be construed as alternatives to net income/loss
determined in accordance with IFRS. EBITDA and Adjusted
EBITDA do not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. WELL defines Adjusted EBITDA as EBITDA before
transaction, restructuring, and integration costs, time-based
earn-out expense, change in fair value of investments, share of
loss of associates, foreign exchange gain/loss, and stock-based
compensation expense. The Company considers Adjusted EBITDA a
financial metric that measures cash that the Company can use to
fund working capital requirements, service future interest and
principal debt repayments and fund future growth initiatives.
- SOFR is a USD denominated benchmark interest rate based on
transactions in the Treasury repurchase market, where investors
offer banks, overnight loans backed by their bond assets.
CDOR is a benchmark reference rate for bankers' acceptance (BA)
borrowings denominated in Canadian dollars.
WELL HEALTH TECHNOLOGIES
Per: "Hamed Shahbazi"
Chief Executive Officer, Chairman and
About WELL Health Technologies
WELL is a practitioner focused digital healthcare company whose
overarching objective is to positively impact health outcomes to
empower and support healthcare practitioners and their patients.
WELL has built an innovative practitioner enablement platform that
includes comprehensive end to end practice management tools
inclusive of virtual care and digital patient engagement
capabilities as well as Electronic Medical Records (EMR), Revenue
Cycle Management (RCM) and data protection services. WELL uses this
platform to power healthcare practitioners both inside and outside
of WELL's own omni-channel patient services offerings. As such,
WELL owns and operates Canada's
largest network of outpatient medical clinics serving primary and
specialized healthcare services and is the provider of a leading
multi-national, multi-disciplinary telehealth offering. WELL is
publicly traded on the Toronto Stock Exchange under the symbol
"WELL" and on OTCQX under the symbol "WHTCF". To
learn more about the Company, please visit: www.well.company.
This news release may contain "Forward-Looking Information"
within the meaning of applicable Canadian securities laws,
including without limitation WELL's future growth plans.
Forward-Looking Information is based upon a number of estimates and
assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and
competitive uncertainties, and contingencies. Forward-Looking
Information generally can be identified by the use of
forward-looking words such as "may", "should", "will", "could",
"intend", "estimate", "plan", "anticipate", "expect", "believe" or
"continue", or the negative thereof or similar variations.
Forward-looking Information involves known and unknown risks,
uncertainties and other factors that may cause future results,
performance or achievements to be materially different from the
estimated future results, performance or achievements expressed or
implied by such Forward Looking Information and, which are not
guarantees of future performance. WELL's statements expressed
or implied by Forward Looking Information are subject to a number
of risks, uncertainties, and conditions, many of which are outside
of WELL 's control, and undue reliance should not be placed on such
statements. Forward-Looking Information is qualified in their
entirety by inherent risks and uncertainties, including: direct and
indirect material adverse effects from the COVID-19 pandemic;
adverse market conditions; risks inherent in the primary healthcare
sector in general; regulatory and legislative changes; that future
results may vary from historical results; inability to obtain any
requisite future financing on suitable terms; any inability to
realize the expected benefits and synergies of acquisitions; that
market competition may affect the business, results and financial
condition of WELL and other risk factors identified in documents
filed by WELL under its profile at www.sedar.com, including its
most recent Annual Information Form. Except as required by
securities law, WELL does not assume any obligation to update or
revise any forward-looking information, whether as a result of new
information, events or otherwise.
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SOURCE WELL Health Technologies Corp.