- Acquisition of KAI has significantly expanded WELL's digital
health portfolio to now provide Electronic Medical Records
("EMR") SaaS1 services to approximately 852
medical clinics across Canada,
supporting more than 4000 registered doctors & practitioners
and over 15 million patients2
- KAI's award winning founders, Arjun
Kumar and Sara Bond have
joined WELL's technology management team and will help drive the
digital health portfolio of the company.
- Acquisition of KAI is immediately financially accretive to
WELL and is expected to improve WELL's gross margin and operating
margin
VANCOUVER, July 2, 2019 /CNW/ - WELL Health
Technologies Corp. (TSX.V: WELL) (the "Company" or
"WELL"), a company focused on consolidating and modernizing
clinical and digital assets within the primary healthcare sector,
is pleased to announce the closing of its previously announced
acquisition (the "Acquisition") of Kela Atlantic Inc. dba
KAI Innovations ("KAI"). KAI provides SaaS (Software as a
Service) based Electronic Medical Records ("EMR") services
to approximately 562 clinics in Ontario, supporting approximately 2,100
registered doctors and practitioners.
"KAI is highly accretive to WELL on both a strategic and
financial basis" said Hamed
Shahbazi, Chairman and CEO of WELL, "With this acquisition,
WELL is now the largest provider of
OSCAR3 EMR services in Canada supporting approximately 852 clinics,
which to our understanding positions the Company as the third
largest EMR services provider in Canada. We're very pleased to welcome the
talented KAI team to the WELL family."
KAI, the recipient of Canadian Business Magazine's 2015 Startup
of the Year, has the third largest EMR user base in Ontario and is the largest provider of
OSCAR EMR services to healthcare
clinics in Canada.
"We're very pleased to be joining the WELL team and helping
drive the next generation of digital health innovation in
Canada" said Arjun Kumar, co-Founder and CEO of KAI
Innovations. "We're also looking forward to continuing to support
the OSCAR community and ensuring that this community continues to
grow and thrive as the industry changes with WELL's support".
The details of the Acquisition were previously announced in the
Company's news release dated May 30,
2019. Pursuant to the share purchase agreement dated
May 30th, 2019 and amended
on June 28th, 2019, the
aggregate purchase price for KAI was approximately $10,750,000, consisting of the following: (i)
$6,000,000 paid in cash upon closing
of the Acquisition; (ii) $2,000,000
paid in the capital of WELL shares at a price of approximately
$0.705 per share; and (iii) cash
payments of $2,750,000 to be paid in
the first year after closing. In addition, WELL will pay a
conditional earn-out based on overall operating performance of up
to $7,000,000.
The consideration shares issued by WELL are subject to a
restricted period of four months and one day. There were no
finder's fees paid in connection with the Transaction.
- SaaS is a acronym for "Software as a Service"
- Patient count is based on total number of patient profiles and
does not exclude duplicate patient records, inactive or deceased
patients.
- OSCAR, an acronym for "Open Source Clinical Application
Resource", is a leading open source based EMR software that was
developed by McMaster University.
WELL HEALTH TECHNOLOGIES CORP.
Per:
"Hamed
Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL
WELL is a unique company that operates Primary Healthcare
Facilities as well as a significant EMR or Electronic Medical
Records business that provides SaaS EMR services to more than 4000
doctors across Canada. WELL's
overarching objective is to empower doctors to provide the best and
most advanced care possible leveraging the latest trends in digital
health. In the last 12 months, WELL physicians served approximately
600,000 patient visits through its network of 19 medical clinics.
WELL is publicly traded on the TSX Venture Exchange under the
symbol WELL.V. WELL was recognized as a TSX Venture 50 Company in
2018 and 2019.
Forward-Looking Statements
This news release may contain "forward-looking statements"
within the meaning of applicable Canadian securities laws,
including, without limitation: the ability of WELL to provide and
continue providing services to the anticipated number of clinics,
practitioners and patients; and the belief that such acquisitions
will position WELL as one of the leading EMR providers in
Canada. Forward looking statements
are 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. These statements 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 statements involve
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 those forward-looking
statements and the forward-looking statements are not guarantees of
future performance. WELL's statements expressed or implied by these
forward-looking statements 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 statements are qualified in their
entirety by the inherent risks and uncertainties surrounding the
Transaction, including: that WELL's assumptions in making
forward-looking statements may prove to be incorrect; adverse
market conditions; risks inherent in the primary healthcare sector
in general; that future results may vary from historical results;
and that market competition may affect the outcome of the business,
results and financial condition of WELL. Except as required by
securities law, WELL does not assume any obligation to update or
revise any forward-looking statements, whether as a result of new
information, events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release
SOURCE WELL Health Technologies Corp.