- WELL has completed the acquisition of the Canadian clinical
assets from Jack Nathan Medical Corp. including a network of 13
owned and operated clinics, which generated revenue of over $9
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 also acquired 59 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.
- WELL has also entered into various agreements with Walmart
Canada that provide a framework to support the potential expansion
of WELL's clinical network within Walmart Canada's footprint of
over 400 locations over time.
- The acquired clinics will be rebranded as WELL Health Medical
Centres, and will reflect WELL's tech enabled approach to
delivering quality healthcare over time.
VANCOUVER, BC and TORONTO, Dec. 2, 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 the closing of the previously announced transaction
(the "Transaction") to acquire the Canadian clinical assets
of Jack Nathan Medical Corp. (TSXV: JNH) ("Jack Nathan"). The Transaction includes a
network of 13 owned and operated primary care clinics across 10
Canadian cities and a clinic licensing business with 59 licensee
clinics under WELL's new Affiliate Clinic business model.
Hamed Shahbazi, Founder and CEO
of WELL, commented "This acquisition marks another significant
milestone for WELL as we expand our clinical footprint to include
Walmart stores in Canada. The
addition of Jack Nathan's network of
owned and licensee clinics strengthens WELL's position as the
largest clinic owner-operator in the country and introduces a new
business model that gives healthcare providers another way to
partner with WELL. Through the newly acquired licensing arrangement
with Walmart Canada, WELL gains a unique opportunity to deliver
care conveniently in high-traffic, densely populated areas within
Walmart Canada's footprint of over 400 locations, including
geographies not currently served by WELL. We look forward to
working with Walmart Canada for years to come."
The Transaction includes a total of 72 clinics, comprising 13
owned and operated clinics and 59 licensee clinics. This represents
a slight adjustment from the originally announced clinic counts, as
some clinics initially categorized as owned and operated were
transitioned to the licensee model prior to close. The owned and
operated clinics collectively generated over $9 million in revenue in the past twelve months
and are expected to be EBITDA-positive within the next twelve
months following the closing. Meanwhile, the licensee clinics
contribute over $2.2 million in
annual high-margin revenue, further enhancing WELL's financial
performance and expanding its clinic network.
Dr. Michael Frankel, WELL's Chief
Medical Officer, commented "We are very pleased to have begun
operating healthcare clinics at Walmart stores across Canada and welcome more than 90 physicians
that have joined the WELL medical family through this transaction.
This expansion aligns with WELL's long-term vision of building a
well-integrated, pan-Canadian network of healthcare clinics, while
bringing greater value to both patients and providers."
The licensee clinics form the foundation of WELL's new primary
care "Affiliate Clinic" business model. This model will allow WELL
to generate high-margin rental income from clinics without directly
managing their day-to-day operations. As WELL expands the Affiliate
Clinic model, WELL plans to support these clinics by recruiting and
placing physicians, providing comprehensive technology solutions,
and offering operational support to help optimize performance. In
the meantime, WELL will act as a property manager for these clinics
to address operational needs. This scalable approach empowers
healthcare providers to independently operate their clinics while
benefiting from WELL's tools and infrastructure, aligning with
WELL's mission to enhance clinic efficiency and support
high-quality patient care.
The acquired clinics will be rebranded as WELL Health Medical
Centres, and will reflect WELL's tech enabled approach to
delivering quality healthcare.
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 38,000
healthcare providers between the US and Canada and power the largest owned and
operated healthcare ecosystem in Canada with over 200 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 with respect to the
operated and licensed clinics. 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: that the
revenue and margins generated by the new Affiliate Clinic model may
be different than anticipated; that WELL's role in supporting the
Affiliate Clinics may be different than anticipated; 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.
