HealWellI found this but don't fully understand the different classes if sharrs and the value of them.
Under an asset purchase agreement, WELL acquired HEALWELL's performing clinics in Ontario, which are expected to generate annual revenue of more than $21 million and contribute to positive EBITDA in fiscal year 2024. On the closing of the Transaction, WELL paid: (i) $1.5 million cash for HEALWELL's clinical assets; (ii) $3.5 million in WELL shares to the holders of The First Canadian Wellness Co. secured credit facilities; and (iii) $4.0 million in cash invested in HEALWELL as part of a convertible debenture financing with 5-year maturity, 10% coupon and convertible into Class A Subordinate Voting Shares at a conversion price of $0.20 per share and 5-to-1 warrant coverage. WELL becomes the largest shareholder of HEALWELL on an as-converted basis.
As part of the Transaction, WELL received an option to acquire up to 30.8 million Class A shares and 30.8 million Class B shares in HEALWELL over time and upon the achievement of certain performance metrics. If WELL fully exercises this call option, WELL is expected to control over 70% of the vote of HEALWELL.
The short-term, secured promissory note for $3.1 million that WELL provided HEALWELL, as previously announced on July 20, 2023, has been fully repaid.