WELL Health Announces Approval of Normal Course Issuer Bid

Rhea-AI Summary

WELL Health Technologies Corp. (TSX: WELL) (OTCQX: WHTCF), a digital health company, announced the approval of its Normal Course Issuer Bid (NCIB) by the Toronto Stock Exchange. This NCIB, renewing the previous one expired on June 4, 2024, allows WELL to purchase up to 6,154,501 common shares, representing approximately 2.5% of its 246,180,060 issued and outstanding shares, over the next 12 months. Purchases will be made on the open market through the TSX and Canadian alternative trading systems, with daily purchases capped at 209,016 shares. Shares acquired will be cancelled to facilitate an orderly market and improve shareholder value. Under the previous NCIB, the company acquired 119,400 shares at an average price of $3.70 per share. The new NCIB will be effective from June 10, 2024, to June 9, 2025.

Positive

• Approval of NCIB allows WELL Health to repurchase up to 2.5% of its outstanding shares.
• NCIB renews the previous program, showcasing continuity in share repurchase strategy.
• Share repurchase can contribute to an orderly market and potentially improve shareholder value.
• Company had 246,180,060 shares issued and outstanding as of May 31, 2024.
• Daily share purchase cap set at 209,016 shares, supporting gradual buyback.
• Shares repurchased under NCIB will be cancelled, reducing total share count.

Negative

• Under the previous NCIB, the company only purchased 119,400 shares out of an eligible 5,884,589 shares.
• Decision to allocate funds to alternative capital opportunities may indicate current liquidity.
• No intention from insiders to sell shares might suggest internal optimism about share price.

VANCOUVER, BC, June 6, 2024 /PRNewswire/ - WELL Health Technologies Corp. (TSX: WELL) (OTCQX: WHTCF) ("WELL" or the "Company"), a digital health company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to announce that its Notice of Intention to Make a Normal Course Issuer Bid ("NCIB") filed with the Toronto Stock Exchange ("TSX") has been approved. The NCIB is a renewal of its NCIB that expired on June 4, 2024. 

WELL believes that purchases of its common shares (the "Shares") pursuant to the NCIB may contribute to the facilitation of an orderly market and is in the best interests of the Company and its shareholders. In the event that WELL believes that its Shares begin trading in a price range that does not adequately reflect their underlying value based on WELL's business prospects and financial position, WELL may purchase Shares pursuant to the NCIB. Depending upon future price movements and other factors, WELL believes that its outstanding Shares may represent an attractive investment and a desirable use of a portion of its corporate funds. 

As of May 31, 2024, the Company had 246,180,060 Shares issued and outstanding. Under the NCIB, the Company may acquire up to an aggregate of 6,154,501 Shares over the next 12-month period, representing approximately 2.5% of the issued and outstanding Shares of the Company. In accordance with TSX rules, daily purchases made by the Company on the TSX will not exceed 209,016 Shares, subject to certain prescribed exemptions, being 25% of the average daily trading volume over the preceding six calendar months of 836,067 Shares. The NCIB will be effective from June 10, 2024 to June 9, 2025. Purchases subject to this NCIB will be made on the open market through the facilities of the TSX and any Canadian alternative trading systems in Canada by a broker on behalf of the Company in accordance with applicable regulatory requirements. All Shares purchased under the NCIB will be returned to treasury for cancellation.

Under the previous NCIB, as of May 31, 2024, the Company's purchased 119,400 Shares through the facilities of the TSX with an average weighted price of $3.70 per Share. Although the Company was eligible to purchase up to 5,884,589 Shares, instead of purchasing the maximum permitted amount, the Company allocated funds to alternative capital opportunities to provide greater returns to shareholders. All Shares purchased under the NCIB were returned to treasury for cancellation.

To the knowledge of the Company, no director, senior officer, or other insider of the Company or any of their associates currently intends to sell any Shares under the NCIB. However, sales by such persons through the facilities of the TSX or any other available market or alternative trading system in Canada may occur if the personal circumstances of any such person change or if any such person makes a decision unrelated to these normal course purchases. The benefits to any such person whose Shares are purchased would be the same as the benefits available to all other holders whose Shares are purchased. 

WELL HEALTH TECHNOLOGIES CORP.

Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director

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SOURCE WELL Health Technologies Corp.

FAQ

What is WELL Health's stock symbol?

WELL Health's stock symbol is WHTCF on the OTCQX and WELL on the TSX.

How many shares can WELL Health repurchase under the new NCIB?

WELL Health can repurchase up to 6,154,501 shares under the new NCIB.

What percentage of WELL Health's outstanding shares does the new NCIB represent?

The new NCIB represents approximately 2.5% of WELL Health's outstanding shares.

When does the new NCIB for WELL Health take effect?

The new NCIB for WELL Health takes effect from June 10, 2024, to June 9, 2025.

What was the average price of shares purchased under WELL Health's previous NCIB?

The average price of shares purchased under WELL Health's previous NCIB was $3.70 per share.

How many shares did WELL Health purchase in the previous NCIB?

WELL Health purchased 119,400 shares in the previous NCIB.

What is the daily purchase limit for WELL Health under the new NCIB?

The daily purchase limit for WELL Health under the new NCIB is 209,016 shares.