Globe & Mail 08:19 AM EDT, 05/25/2022 (MT Newswires) -- WELL Health Technologies Corp. (WELL.TO) on Wednesday provided key business updates.
Following the completion of its recent bought deal private placement led by several large institutional investors, WELL is ramping up its M&A program with multiple signed and actionable letters of intent (LOI).
"We recently made the timely and important decision to add significant cash to our balance sheet. Additionally, WELL has a long-dated debt maturity schedule, all vendor takebacks have been retired, and we will continue to generate excess free cashflow beyond any interest or earnout payments." said Hamed Shahbazi, Founder and CEO. "Our stronger financial position comes at a time where acquisition valuations have fallen and the expected returns on capital allocation have improved. This added liquidity gives WELL the ability to aggressively pursue its goal of increasing intrinsic value on a per-share basis"
A team at WELL is working with all functional group and business unit leaders to identify cost optimizations and margin enhancement opportunities for better operating cashflow. "Notwithstanding our profitability and growth which on a combined basis is industry leading within the tech-enabled healthcare industry, we are also embarking on a sweeping operating cost review and optimization initiative. The combined effect of our organic and inorganic growth opportunities and focus on operating cost efficiency will deliver tangible value to WELL shareholders," COO Amir Javidan said.
WELL has also formed a new Provider Solutions Business Unit, which combines the previous WELL EMR Group, Billing and RCM and several Digital Application businesses into a one single practitioner enablement platform. The consolidation will simplify the relationship healthcare providers have with WELL and promote WELL's practitioner enablement platform.
The new unit includes companies and brands like AwareMD, Intrahealth, Oscar Pro, DoctorCare, and CognisantMD. "This integrated offering will not only support in simplifying the relationship we have with our growing network of over 21,000 doctors and healthcare practitioners across the country, but it will also allow WELL to continue to grow our market share through a unique and unified platform offering," the company said.
The unit will be run by the current managing directors of DoctorCare, Adam Hutton and Paulo Gomes.