RE:TD 2The ongoing evolution of WELL continues ; now they're going to be an incubator of companies !
I guess the success of AIDX provided the impetus.
So , once again , they've shifted the goalposts on investors. Started as a health care company with some capital venture investment ( Circle and WISP) to we're going to be a clinic operating giant in Canada ....... to an incubator of small $10.4 million spinouts.
I get they think the company is undervalued and this is way to increase the stock price but each time it sets back investor comfort with the company ( which hits the stock price) ..
It also divorces the stock price IMO from the operating performance of the company.
That's the way I see it. Feel free to disagree with me.
Excuse me while I bang my head against a wall.
"Provider Solutions spinout in the works. Building on WELL's plans to help unlock shareholder value (a key theme of its recent Investor Day), which includes the ongoing strategic reviews of Wisp/Circle, it announced plans to spin out its WELL Provider Solutions (WPS) business. WPS is WELL's SaaS & Tech business excluding the (lumpy) cybersecurity business (overview in Fig. 2 on Pg. 4). WPS serves >37k practitioners, including ~1/3 of all Canadian doctors, in >4k clinics.
In Q2/F24, WPS' revenue grew 24% y/y organically to C$10.4mm (>90% recurring) with 86% GM and 30% EBITDA margins, making it a Rule of 50 company.
The spinout is planned for H1/F25 and WELL intends to retain a majority stake. We believe this is important to ensure the business, which is critical to the success of its Canadian clinic business, continues to align with WELL's overall strategic direction."