HEALWELL AI Announces Strategic Divestments and Progression to a Pure-Play SaaS, Services and AI Business

Core Insights - HEALWELL AI has completed strategic divestments to transition into a pure-play SaaS, services, and AI business focused on preventative healthcare [3][4][5] - The transactions include the sale of non-core assets to WELL Health Technologies Corp. and the establishment of a clinical research joint venture [3][4][5] Transaction Details - HEALWELL sold its Polyclinic Family Medicine and Specialty Clinics Group to WELL Clinics, which has managed these clinics since January 2024 [5][7] - The company divested its 58.66% interest in Mutuo Health Solutions to WELLSTAR Technologies, allowing HEALWELL to concentrate on its core digital healthcare solutions [5][8] - A 50/50 clinical research joint venture was formed with WELL Health Technologies, aimed at advancing clinical research initiatives [5][9] Financial Impact - The transactions are expected to add approximately $9.4 million in cash to HEALWELL's balance sheet upon closing [4] - HEALWELL's revenue run rate is projected to be around $120 million annually, with profitability on an Adjusted EBITDA basis [5] Strategic Focus - The company aims to enhance its focus on high-margin AI and software services for large enterprise customers globally [4][6] - HEALWELL is committed to integrating validated AI solutions with its healthcare software segment to achieve margin expansion and organic growth [6] Governance and Compliance - A special committee was formed to assess the transactions, ensuring fairness and compliance with regulations [10][11][15] - The transactions were approved under the TSX Company Manual and are exempt from certain formal valuation requirements due to their aggregate fair market value [16][17]