WELL Health to acquire stake in SleepWorks Medical
July 24, 2019
VANCOUVER – WELL Health Technologies Corp., a company focused on modernizing clinical and digital assets within the primary healthcare sector, is pleased to announce it has entered into a definitive share purchase agreement with SleepWorks Medical Inc.
WELL has agreed to acquire 51% of the issued and outstanding shares of SleepWorks. The remaining 49% of the issued and outstanding shares of SleepWorks will be retained by the former principal shareholders of SleepWorks, who will continue to operate the company on a post-closing basis.
“We’re thrilled to welcome Larry Bloom, co-founder of SleepWorks, and the rest of the SleepWorks team to the WELL family,” said Hamed Shahbazi (pictured), chairman and CEO of WELL. “SleepWorks has been a valued partner to WELL clinics for six years and has earned the trust of many of our physicians for their top-notch service.”
Under the terms of the agreement, the total consideration payable by WELL in connection with the transaction is $1.13 million. WELL shall have the right to acquire the remaining shares it doesn’t acquire as part of the transaction pursuant to a call option.
SleepWorks is engaged in the business of providing services in connection with the diagnosis and treatment of sleep disorders and the sale of equipment related to sleep disorders. In the past 12 months, SleepWorks has generated more than $1.7 million in revenues with EBITDA margins exceeding 25%. SleepWorks currently provides services in 22 clinical locations throughout the Greater Vancouver region, including all 19 of WELL Health’s clinics.
“WELL Health has been a great partner for us in the past and we expect to work even closer together in the future,” said Larry Bloom, co-founder of SleepWorks. “We are delighted to join the WELL team and look forward to continuing to provide sleep related services to WELL’s growing number of patients.”
WELL is a unique company that operates Primary Healthcare Facilities as well as a significant EMR or Electronic Medical Records business that supports the digitization of such clinics. WELL’s overarching objective is to empower doctors to provide the best and most advanced care possible leveraging the latest trends in digital health. In the last 12 months, WELL physicians served approximately 600,000 patient visits through its network of 19 medical clinics. WELL is publicly traded on the TSX Venture Exchange under the symbol WELL.V. WELL was recognized as a TSX Venture 50 Company in 2018 and 2019.