HEALWELL AI Closes the $30M Convertible Debt Tranche of its Upsized Bought Deal Financing
HEALWELL AI has completed the second tranche of its $55 million bought deal financing, issuing $30 million in convertible debenture subscription receipts. This follows the $25.5 million equity tranche completed last week. The funds will finance the acquisition of Orion Health Holdings
The company issued 30,000 debenture subscription receipts at $910 each, generating gross proceeds of $27.3 million. Each receipt converts to a $1,000 principal debenture with a 10% annual interest rate, maturing December 31, 2029. The debentures are convertible into Class A Subordinate Voting Shares at $2.40 per share.
The proceeds are held in escrow pending satisfaction of release conditions, primarily the completion of the Orion Health acquisition. If conditions aren't met by June 30, 2025, the funds will be returned to investors. The transaction received written approval from majority shareholders on January 27, 2025.
HEALWELL AI ha completato la seconda tranche del suo finanziamento da $55 milioni, emettendo $30 milioni in ricevute di sottoscrizione di obbligazioni convertibili. Questo segue la tranche azionaria da $25,5 milioni completata la scorsa settimana. I fondi finanzieranno l'acquisizione di Orion Health Holdings.
L'azienda ha emesso 30.000 ricevute di sottoscrizione di obbligazioni a $910 ciascuna, generando proventi lordi di $27,3 milioni. Ogni ricevuta si converte in un'obbligazione principale da $1.000 con un tasso di interesse annuale del 10%, che scade il 31 dicembre 2029. Le obbligazioni sono convertibili in azioni di voto subordinate di Classe A a $2,40 per azione.
I proventi sono detenuti in deposito cautelare in attesa del soddisfacimento delle condizioni di rilascio, principalmente il completamento dell'acquisizione di Orion Health. Se le condizioni non vengono soddisfatte entro il 30 giugno 2025, i fondi verranno restituiti agli investitori. La transazione ha ricevuto approvazione scritta dalla maggioranza degli azionisti il 27 gennaio 2025.
HEALWELL AI ha completado la segunda tranche de su financiamiento por $55 millones, emitiendo $30 millones en recibos de suscripción de obligaciones convertibles. Esto sigue a la tranche de capital de $25,5 millones completada la semana pasada. Los fondos financiarán la adquisición de Orion Health Holdings.
La empresa emitió 30,000 recibos de suscripción de obligaciones a $910 cada uno, generando ingresos brutos de $27,3 millones. Cada recibo se convierte en una obligación principal de $1,000 con una tasa de interés anual del 10%, que vence el 31 de diciembre de 2029. Las obligaciones son convertibles en acciones de voto subordinadas de Clase A a $2.40 por acción.
Los ingresos se mantienen en depósito en espera del cumplimiento de las condiciones de liberación, principalmente la finalización de la adquisición de Orion Health. Si no se cumplen las condiciones antes del 30 de junio de 2025, los fondos serán devueltos a los inversores. La transacción recibió la aprobación por escrito de la mayoría de los accionistas el 27 de enero de 2025.
HEALWELL AI는 5천5백만 달러 규모의 구매 계약 금융의 두 번째 분할을 완료하고, 3천만 달러의 전환 사채 구독 영수증을 발행했습니다. 이는 지난주에 완료된 2천5백5십만 달러의 자본 분할에 이어지는 것입니다. 자금은 Orion Health Holdings의 인수를 자금 지원할 것입니다.
회사는 각각 910달러에 30,000개의 전환 사채 구독 영수증을 발행하여 총 2천7백3십만 달러의 수익을 창출했습니다. 각 영수증은 1,000달러의 주요 사채로 전환되며, 연간 10%의 이자율을 가지고 있으며, 만기는 2029년 12월 31일입니다. 이 사채는 주당 2.40달러에 클래스 A 하위 투표 주식으로 전환할 수 있습니다.
수익금은 Orion Health 인수 완료와 같은 방출 조건이 충족될 때까지 에스크로에 보관됩니다. 조건이 2025년 6월 30일까지 충족되지 않으면 자금은 투자자에게 반환됩니다. 이 거래는 2025년 1월 27일에 대다수 주주의 서면 승인을 받았습니다.
HEALWELL AI a complété la deuxième tranche de son financement de 55 millions de dollars, en émettant 30 millions de dollars en reçus de souscription d'obligations convertibles. Cela fait suite à la tranche d'équité de 25,5 millions de dollars complétée la semaine dernière. Les fonds financeront l'acquisition d'Orion Health Holdings.
L'entreprise a émis 30 000 reçus de souscription d'obligations à 910 dollars chacun, générant des recettes brutes de 27,3 millions de dollars. Chaque reçu se convertit en une obligation principale de 1 000 dollars avec un taux d'intérêt annuel de 10 %, arrivant à échéance le 31 décembre 2029. Les obligations sont convertibles en actions de vote subordonnées de catégorie A à 2,40 dollars par action.
Les recettes sont conservées en fiducie en attendant la satisfaction des conditions de libération, principalement le finalisation de l'acquisition d'Orion Health. Si les conditions ne sont pas remplies d'ici le 30 juin 2025, les fonds seront retournés aux investisseurs. La transaction a reçu l'approbation écrite des actionnaires majoritaires le 27 janvier 2025.
HEALWELL AI hat die zweite Tranche seiner Finanzierung über 55 Millionen Dollar abgeschlossen und 30 Millionen Dollar in wandelbare Schuldverschreibungen ausgegeben. Dies folgt auf die letzte Woche abgeschlossene Aktien-Tranche über 25,5 Millionen Dollar. Die Mittel werden zur Finanzierung der Akquisition von Orion Health Holdings verwendet.
Das Unternehmen gab 30.000 Schuldverschreibungen zu je 910 Dollar aus und erzielte brutto Einnahmen von 27,3 Millionen Dollar. Jede Schuldverschreibung wird in eine Hauptschuldverschreibung von 1.000 Dollar mit einem jährlichen Zinssatz von 10% umgewandelt, die am 31. Dezember 2029 fällig wird. Die Schuldverschreibungen sind zu einem Preis von 2,40 Dollar pro Aktie in Klasse A nachrangige Stimmrechtsaktien umwandelbar.
Die Einnahmen werden in einem Treuhandkonto bis zur Erfüllung der Freigabebedingungen gehalten, hauptsächlich bis zum Abschluss der Orion Health-Akquisition. Wenn die Bedingungen bis zum 30. Juni 2025 nicht erfüllt sind, werden die Mittel an die Investoren zurückgegeben. Die Transaktion erhielt am 27. Januar 2025 die schriftliche Zustimmung der Mehrheit der Aktionäre.
- Secured $55 million total financing ($30M convertible debt + $25.5M equity)
- 10% annual interest rate on convertible debentures provides stable yield
- Majority shareholder approval already obtained for the transaction
- Potential shareholder dilution through conversion of debentures at $2.40/share
- High 10% interest rate on convertible debentures increases debt servicing costs
- Transaction price below recent trading price ($2.08/share)
- HEALWELL has completed the convertible debt tranche of its previously announced upsized
$55 million bought deal financing, issuing subscription receipts for$30 million in convertible debentures. - The proceeds of the financing, together with the
$25.5 million equity tranche of the offering completed last week, will be used to fund the previously announced acquisition of New Zealand based Orion Health.
Toronto, Ontario--(Newsfile Corp. - January 28, 2025) - HEALWELL AI Inc. (TSX: AIDX) (OTCQX: HWAIF) ("HEALWELL" or the "Company"), a healthcare artificial intelligence company focused on preventative care, is pleased to announce that it has completed the second tranche (the "Second Closing") of its previously announced
The gross proceeds from the Second Closing, including the Underwriters' cash commission, have been deposited in escrow pending the satisfaction of certain release conditions, including that all conditions precedent to the acquisition by the Company of Orion Health Holdings Limited (the "Acquisition", and together with the Offering, the "Transaction") have been met (the "Release Conditions").
Details of the Convertible Debt Financing
The Company has issued a total of 30,000 Debenture Subscription Receipts at a price of
The gross proceeds of the Second Closing, including the Underwriters' cash commission, have been deposited in escrow until the satisfaction of the Release Conditions. Upon satisfaction of the Release Conditions, the Underwriters' cash commission and any expenses of the Underwriters will be paid to the Underwriters from the escrowed proceeds and the net amount will be released to the Company. In the event that the Release Conditions have not been satisfied prior to 5:00 p.m. (Vancouver Time) on June 30, 2025, or the Company advises the Underwriters or announces to the public that it does not intend to satisfy the Release Conditions or that the Acquisition has been terminated, the aggregate issue price of the Debenture Subscription Receipts (plus any interest earned thereon) shall be returned to the applicable holders of the Debenture Subscription Receipts, and such Debenture Subscription Receipts shall be automatically cancelled and be of no further force and effect.
On completion of the Second Closing, the Company also issued to the Underwriters a total of 455,000 warrants for Subordinate Voting Shares with a three-year term and an exercise price of
The Transaction is subject to the shareholder approval requirements of Sections 607(g) and 611(c) of the TSX Company Manual as: (i) the Transaction involves the issuance of Subordinate Voting Shares at less than
Shareholders representing a majority of the voting shares of the Company executed an initial written consent approving the Transaction on January 13, 2025 and have subsequently confirmed by a further written consent on January 27, 2025 that they continue to approve of the Transaction in its present form. The details of the Transaction and its maximum potential dilutive effect on shareholders are set out in the Company's news release dated January 14, 2025 and have not materially changed, other than the substitution of the Debenture Subscription Receipts for the Convertible Debentures.
Gardiner Roberts LLP acted as counsel for the Company and Wildeboer Dellelce LLP acted as counsel for the Underwriters in connection with the Offering.
Dr. Alexander Dobranowski
Chief Executive Officer
HEALWELL AI Inc.
About HEALWELL
HEALWELL is a healthcare artificial intelligence company focused on preventative care. Its mission is to improve healthcare and save lives through early identification and detection of disease. Using its own proprietary technology, the Company is developing and commercializing advanced clinical decision support systems that can help healthcare providers detect rare and chronic diseases, improve efficiency of their practice and ultimately help improve patient health outcomes. HEALWELL is executing a strategy centered around developing and acquiring technology and clinical sciences capabilities that complement the Company's road map. HEALWELL is publicly traded on the Toronto Stock Exchange under the symbol "AIDX" and on the OTC Exchange under the symbol "HWAIF". To learn more about HEALWELL, please visit https://healwell.ai/.
About ORION HEALTH
Orion Health is a global healthcare technology company focused on reimagining healthcare for all. Orion Health is leading the change in digital health with health and care organizations to improve the wellbeing of every individual with our world leading Unified Healthcare Platform. Made up of a Virtuoso digital front door, Amadeus digital care record, and Orchestral health intelligence platform - each underpinned by extensive health and social data sets, machine learning, and 30 years of innovation focused purely on improving global well-being. www.orionhealth.com.
Forward-Looking Statements
Certain statements in this press release, constitute "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws and are based on assumptions, expectations, estimates and projections as of the date of this press release. Forward-looking statements in this press release include statements with respect to, among other things, the intended uses of the proceeds of the Offering, the pending acquisition by the Company of Orion Health, the potential for a shareholder meeting in connection with the Transaction and the potential future satisfaction or non-satisfaction of the Release Conditions. Forward-looking statements are often, but not always, identified by words or phrases such as "expect", "anticipate", "pending", "shall be", "subject to" or variations of such words and phrases or statements that certain future conditions, actions, events or results "will", "may", "could", "would", "should", "might" or "can" be taken, occur or be achieved, or the negative of any of these terms . Forward-looking statements are necessarily based upon management's perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by HEALWELL as of the date of such statements, are outside of HEALWELL's control and are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being entirely or partially incorrect or untrue. Forward-looking statements contained in this press release are based on various assumptions, including, but not limited to, the following: the parties' ability to satisfy any conditions precedent to completion of the Acquisition, including receipt of all shareholder, regulatory and TSX approvals; HEALWELL's ability to complete the Acquisition or to complete it on the terms described above; HEALWELL's ability to continue to access sources of debt and equity financing and the terms on which such financing may be provided; HEALWELL's ability to integrate the acquired businesses, products and services with its own; the stability of general economic and market conditions; HEALWELL's ability to comply with applicable laws and regulations; HEALWELL's continued compliance with third party intellectual property rights; and that the risk factors noted below, collectively, do not have a material impact on HEALWELL's business, operations, revenues and/or results. By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections, or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved.
Known and unknown risk factors, many of which are beyond the control of HEALWELL, could cause the actual results of HEALWELL to differ materially from the results, performance, achievements, or developments expressed or implied by such forward-looking statements. Such risk factors include but are not limited to those factors which are discussed under the section entitled "Risk Factors" in HEALWELL's most recent annual information form dated April 1, 2024, which is available under HEALWELL's SEDAR+ profile at www.sedarplus.ca. The risk factors are not intended to represent a complete list of the factors that could affect HEALWELL and the reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. HEALWELL disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. All of the forward-looking statements contained in this press release are qualified by these cautionary statements.
For more information:
Pardeep S. Sangha
Investor Relations, HEALWELL AI Inc.
Phone: 604-572-6392
ir@healwell.ai
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238747
FAQ
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