- WELL to acquire Canadian clinical assets from Jack Nathan
Medical Corp. including a network of 16 owned and operated clinics,
which generated revenue of over $10
million in the past 12 months. The portfolio of owned and
operated clinics is expected to operate profitably on an adjusted
EBITDA basis in 2025, following immediate synergies with WELL's
shared services program and application of WELL's clinic
transformation program.
- WELL will also acquire 62 licensee clinics that generate
approximately $2.2 million annually
in high margin revenue and will become the model for WELL's new
'Affiliate Clinic' business stream.
- On closing, WELL will acquire Jack
Nathan's rights to operate medical clinics in Walmart Canada
stores, creating a platform to expand its network within Walmart
Canada's footprint of over 400 Canadian locations.
- The acquisition of Jack Nathan's
licensee clinics business brings forth a new high margin primary
care 'Affiliate' business model to WELL that will be characterized
by WELL recruiting and placing physicians into small clinics that
would be owned and operated by physicians with WELL's technology
support.
VANCOUVER, BC and TORONTO, Nov. 4, 2024
/PRNewswire/ -- WELL Health Technologies Corp. (TSX: WELL) (OTCQX:
WHTCF) ("WELL" or the "Company"), a digital
healthcare company focused on improving health outcomes through
technology and empowering healthcare providers globally, is pleased
to announce that it has entered into definitive agreements for the
acquisition of the Canadian clinical assets of Jack Nathan Medical
Corp. (TSXV: JNH) ("Jack
Nathan"). This acquisition includes both a network of 16
owned and operated primary care clinics across 13 Canadian cities
and a clinic licensing business with 62 licensee clinics, which
will become the model for WELL's new Affiliate Clinic business
stream. The 16 owned and operated clinics generated over
$10 million in revenue in the past 12
months, while the licensing business generated over $2.2 million in annual revenue. On closing
of the Transaction, WELL will acquire Jack
Nathan's rights to operate medical clinics in Walmart Canada
stores, creating a platform to grow primary care operations at
Walmart with the goal of expanding WELL's owned and operated
network and affiliate managed clinics within Walmart Canada's
footprint of over 400 Canadian locations.
Hamed Shahbazi, Founder and CEO
of WELL, commented: "Acquiring JNH's Canadian business will mark a
key milestone in WELL's mission to support healthcare providers and
improve clinic operations across Canada. By adding 90 doctors to our network
and expanding with both owned and affiliate clinics, we will be
enhancing our ability to support physicians in delivering
high-quality care. These clinics, situated in Canadian Walmart
stores across a diverse network of 13 Canadian cities, will benefit
from WELL's optimization tools and digital innovations aimed at
improving efficiency and enhancing the provider experience."
This acquisition will expand WELL's reach across a broad
geographic area, offering significant potential for growth,
leveraging the footprint of Walmart Canada, and builds on WELL's
position as the largest clinic owner-operator in Canada, aligning with its long-term goal of
establishing a cohesive, well-integrated pan-Canadian network of
healthcare clinics. The newly acquired clinics, located within
Canadian Walmart stores, provide convenient access to care in
densely populated regions. WELL expects to leverage its shared
services program and clinic transformation initiatives to drive
performance, with an expectation to operate profitably on an
adjusted EBITDA basis in 2025.
WELL's Chief Medical Officer, Dr. Michael Frankel commented "Primary care is the
foundation of the healthcare system, and this expanded footprint
enables WELL to equip physicians with the tools and support they
need to deliver care more efficiently and effectively. This
acquisition strengthens WELL's position as a leading healthcare
company focused on empowering providers, improving workflows, and
ensuring the sustainability of clinic operations."
The Transaction includes 62 licensee clinics across Canada, introducing a new primary care
"Affiliate Clinic" business model for WELL. The expansion of this
model will involve WELL recruiting and placing physicians into
smaller clinics that would be owned and operated by the physicians
themselves, with WELL providing comprehensive technology and
operational support while generating rental income without
operational responsibilities. The Affiliate Clinics will provide
rental income without operational responsibilities for WELL,
contributing to a high-margin revenue stream while allowing WELL to
focus on expanding its larger core clinic operations. This new
business model aligns with WELL's ongoing mission to empower
healthcare providers and improve the efficiency of clinic
operations.
Mike Marchelletta, Executive Vice
Chairman of JNH commented, "WELL Health is well positioned to
leverage its impressive technology stack, operational expertise and
advancements in AI to improve access to millions of patients within
the JNH network across Canada,
while also enhancing the patient and physician experience.
The team at WELL Health have demonstrated exceptional leadership in
creating sustainable and tech enabled clinical experiences and we
will be pleased to see WELL take the network to the next
level."
WELL's clinic transformation team will work to optimize the
newly acquired clinics, focusing on improving workflows,
streamlining operations, and enhancing both provider and patient
experiences. Leveraging WELL's digital tools and innovations, these
clinics will undergo a transformation aimed at improving
operational efficiency and overall sustainability.
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL's mission is to tech-enable healthcare providers. We do
this by developing the best technologies, services, and support
available, which ensures healthcare providers are empowered to
positively impact patient outcomes. WELL's comprehensive healthcare
and digital platform includes extensive front and back-office
management software applications that help physicians run and
secure their practices. WELL's solutions enable more than 37,000
healthcare providers between the US and Canada and power the largest owned and
operated healthcare ecosystem in Canada with more than 180 clinics supporting
primary care, specialized care, and diagnostic services. In
the United States WELL's solutions
are focused on specialized markets such as the gastrointestinal
market, women's health, primary care, and mental health. WELL is
publicly traded on the Toronto Stock Exchange under the symbol
"WELL" and on the OTC Exchange under the symbol "WHTCF". To learn
more about WELL, please visit: www.well.company.
Forward-Looking Statements
This news release contains "Forward-Looking Information" within
the meaning of applicable Canadian securities laws, including,
without limitation: information regarding the Transaction and the
Company's goals, strategies and growth plans. Forward-Looking
Information is necessarily 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",
"goal" 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 the Forward-Looking Information and the
Forward-Looking Information is not a guarantee of future results or
performance. WELL's comments expressed or implied by such
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
information. Forward-Looking Information are qualified in their
entirety by inherent risks and uncertainties, including: the
possibility that the closing conditions to the Transaction may not
be satisfied or may not be satisfied on a timely basis; the
possibility that the terms of the Transaction may require amendment
prior to closing; WELL's ability to successfully integrate the
newly acquired clinics into its clinic network; WELL's ability to
develop and maintain its commercial relationship with Wal-Mart
Canada Corp.; direct and indirect material adverse effects from
adverse market conditions; risks inherent in the primary healthcare
sector in general; regulatory and legislative changes; litigation
risk; that future results may vary from historical results; an
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
and its most recent Management, Discussion and Analysis. 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.
