TD $8.5 TARGET (90% RET8RN)Event This morning, WELL Health announced record patient volumes ahead of its Q2/F23 results, which is expected to yield record quarterly revenue. Impact: SLIGHTLY POSITIVE Another record quarter. In Q2/F23, WELL Health delivered: Canadian Patient Services - 537,241 patient visits, up 9% y/y and 6% q/q, driven by record revenue in its Canadian Primary Care and MyHealth businesses. WELL Health USA - 478,034 patient visits, up 6% y/y and 1% q/q, driven by organic growth at Circle and Wisp as well as acquisitions by CRH. The press release indicated Wisp and CRH delivered record revenue but Circle was not mentioned, suggesting a sequential decline, likely due to in part to distractions from its rapid clinic expansion. Given how important Circle has been and is to WELL's superior organic growth, we believe its performance is worth closely monitoring in the coming quarters. Technology Interactions - 453,259 patient bookings (from OceanMD, Adracare, Insig, etc.), up 43% y/y and 7% q/q. In total, WELL achieved ~1.47mm patient interactions in Q2/F23, up 17% y/y and 5% q/q, including >1mm patient visits for the first time in a quarter. WELL is expecting to report record revenue in Q2/F23 and a sequential increase in Adjusted EBITDA, implying that it will continue its four-year streak of meeting/beating consensus. Additional MCI deal details. According to MCI's filings (material contracts related to its recent deal with WELL), the strike prices for the call options granted to WELL are $0.125/Class A share (SVS) and $0.0001/Class B share (MVS). Also, WELL will pay $3.5mm in cash or shares to settle the ~$7mm balance of the FCW debt. Based on a $2.5mm convertible debenture investment, the exercising of its MCI options, and the $3.5mm paid to settle the FCW debt, we estimate WELL's MCI investment cost base of ~$10mm with a current market value of ~$17mm (~73% return). Conference call details. WELL will release its Q2/F23 results on Thursday, August 10, 2023, prior to market open and will hold a conference call the same day at 1:00 p.m. ET (1-888-664-6383). More details are in our Healthcare Tech Preview Note.