RE:Well Health invests $5.94M in telehealth firm Insig (Mar 26) Well Health closes Insiq investment
2020-04-08 07:59 ET - News Release
Mr. Hamed Shahbazi reports
WELL HEALTH CLOSES STRATEGIC INVESTMENT IN INSIG CORPORATION AND RAPIDLY EXPANDS VIRTUALCLINIC+ TELEHEALTH PROGRAM
Further to its news release dated March 26, 2020, Well Health Technologies Corp. has completed all components of its strategic investment in Insig Corp., a market leader in the telehealth space in Canada.
Well Health has closed its previously announced share exchange acquisition of approximately $3.94-million in Insig shares and Well's chief executive officer, Hamed Shahbazi, has joined Insig's board of directors.
This investment brings Well's total investment in Insig to approximately $5.94-million, including the previously announced $2-million secured, convertible promissory note. Assuming the note will be fully converted, Well becomes the largest shareholder of Insig.
In addition, in accordance with its strategic alliance agreement with Insig, Well continues to rapidly grow and expand VirtualClinic+, Well's own telehealth program, to health care providers and patients across Canada.
Well, Insig and certain shareholders of Insig entered into a share exchange agreement whereby the company acquired a substantial minority equity position in Insig, comprising approximately 2,625 Class A common shares of Insig, in exchange for an aggregate consideration of 2,625,204 common shares in the capital of Well at a deemed price of $1.50 per share, representing deemed consideration of approximately $3.94-million.
Including Well's previously announced investment in Insig of a $2-million secured, convertible promissory note, the company's aggregate total investment in Insig is approximately $5.94-million. Well becomes the largest shareholder of Insig assuming full conversion of the convertible note.
Furthermore, Well entered into a strategic alliance agreement with Insig which allowed Well to commercialize and launch the Insig platform on a private label basis under the brand VirtualClinic+. Well's investment and partnership with Insig position the company as a leading provider of telehealth services in Canada. Well's CEO Mr. Shahbazi has also joined Insig's board of directors and will help support Insig's efforts to grow and meet the rapidly expanding need for telehealth services amongst Canadian doctors and patients.
"Well has seen tremendous interest and activity in its VirtualClinic+ telehealth service, which now includes hundreds of health care practitioners delivering thousands of consultations per week," said Mr. Shahbazi. "We are thrilled to be partnering with the Insig team to deliver highly accessible quality health care for Canadians at this critical time. Also, I am personally looking forward to serving on the Insig board and furthering the success of what we believe to be, the most exciting telehealth platform in the country."
"We are excited to have Well as both an investor and a strategic partner," said Matthew Mazzuca, CEO of Insig. "Well's leadership and network in the health care industry is a great fit with our technology platform. Working together we can deliver a telehealth solution that meets the needs of Canadian doctors while improving patient access to health care."
About Well Health Technologies Corp.
Well is a unique company that operates primary health care facilities, is the third-largest digital electronic medical records (EMR) supplier in Canada and is a provider of telehealth services. Well owns and operates 21 health care clinics, provides digital EMR software and services to 1,446 clinics across Canada, and is a majority owner of SleepWorks Medical. Well's overarching objective is to empower doctors to provide the best and most advanced care possible while leveraging the latest trends in digital health. Well is an acquisitive company that has completed nine acquisitions and two equity investments.
About Insig Corp.
Insig is a private Canadian company engaged in developing telemedicine platforms, and clinical automation software. Insig has grown to serve hundreds of physicians and medical practitioners across the country, with over 100,000 patients having used the platform. Insig's goal is to remove the administrative burden in medical practice so doctors can focus on what they do best, practise medicine.
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