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WELL Health Provides Corporate Update Highlighting Canadian Clinics Growth Momentum and Record Pipeline of Canadian Public Sector Business Opportunities Amidst Surge of 'Buy Canadian' Sentiment
WELL announces it has added 11 clinics to its Canadian Clinics network since February 1, 2025. This included 9 acquired clinics and 2 absorbed clinics. The combined revenues from the added clinics is approximately $29 million with $2 million of EBITDA.
WELL Canadian clinics grew organically at 24% for the full year in 2024. This figure included 12% in same clinic revenue growth and 12% in organic absorption.
WELL highlights that its pipeline of Canadian public sector opportunities for technology services is now tracking almost 70 separate opportunities across all Canadian provinces and federally worth more than $300M in deal size(1). This figure reflects more than triple the size of its public sector pipeline one year ago and represents the largest public sector opportunity pipeline in the Company's history.
WELL's combined Canadian Clinic acquisition growth pipeline currently includes 34 opportunities generating $450M in revenues.
VANCOUVER, BC, March 4, 2025 /PRNewswire/ - WELL Health Technologies Corp. (TSX: WELL) (OTCQX: WHTCF) ("WELL" or the "Company"), a digital healthcare company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to provide a corporate update highlighting its recent momentum in Canadian Clinics growth momentum and a record pipeline of Canadian public sector business opportunities amidst a surge of "Buy Canadian" sentiment.
WELL Health Technologies Logo (CNW Group/WELL Health Technologies Corp.)
Since February 1, 2025, WELL has made significant strides in expanding its Canadian Clinics network, adding 11 clinics through a combination of 9 acquired clinics and 2 absorbed clinics. These additions currently generate combined revenues of approximately $29 million and EBITDA of $2 million, further strengthening WELL's position as a leader in the Canadian healthcare sector and leaving room for further margin expansion as the Company expects to apply its clinic transformation processes. WELL's Canadian clinics demonstrated robust performance throughout 2024, achieving an organic growth rate of 24%. This figure includes 12% same-clinic revenue growth and 12% growth through organic absorption.
Hamed Shahbazi, Founder and CEO of WELL, stated, "The expansion of our Canadian Clinics Platform and the remarkable growth in our public sector technology pipeline are powerful indicators of WELL's ability to execute its growth strategy effectively. The 'Buy Canadian' movement aligns perfectly with our vision of strengthening the Canadian healthcare ecosystem. We are well-positioned to seize these opportunities by delivering innovative solutions that not only support healthcare practitioners but also contribute to Canada's economic resilience."
The Company's pipeline of Canadian public sector opportunities for technology services has also seen substantial growth. WELL is currently tracking almost 70 opportunities across all Canadian provinces and federally, representing an estimated total contract value of over $300 million. This pipeline is the largest public sector opportunity pipeline in its corporate history and represents more than triple the size of its public sector pipeline one year ago. This growth underscores WELL's strategic focus on capitalizing on emerging opportunities within Canada's public sector and reflects WELL's focus on building out a more robust product portfolio not only internally but through its affiliates.
The recent surge in "Buy Canadian" sentiment presents a unique opportunity for WELL. On February 1, 2025, Premier David Eby of British Columbia announced a directive to ban new procurement from U.S. companies in response to the U.S. tariffs imposed by President Donald Trump. During a news conference in Vancouver, Premier Eby outlined a three-point plan to protect B.C. workers and businesses following the implementation of 25% tariffs on Canadian goods (10% on energy) effective February 4, 2025. His directive urged the B.C. government and Crown corporations, including ICBC, health services, and BC Hydro, to prioritize Canadian goods and services, effectively blocking new procurement contracts with U.S. companies. The Province of B.C. is one of WELL's most important markets and relationships.
This sentiment has been echoed by leaders from other provinces and at the federal level. Ontario Premier Doug Ford and Quebec Premier François Legault have both publicly supported prioritizing Canadian suppliers to strengthen regional economies. Additionally, François-Philippe Champagne, Canada's Minister of Innovation, Science, and Industry, has encouraged businesses across Canada to adopt a "Buy Canadian" approach and announced federal initiatives to support companies transitioning to domestic products and services. These measures emphasize the long-term benefits of economic independence and resilience.
"I have never seen such strong interest from public sector leaders in our products and services as we are experiencing right now," said Shane Sabatino, Chief People Officer and Head of Public Sector Partnerships at WELL. "Our expanded capabilities, combined with a growing momentum to source from Canadian companies, have created a unique opportunity for WELL to make a significant impact. We are proud to collaborate with public sector organizations across Canada, delivering innovative, homegrown solutions that enhance healthcare delivery and support our national economy."
On February 3, 2025, WELL disclosed that it has no exposure to U.S. tariffs against Canadian goods and any potential future tariffs imposed on services would not harm the Company given that it currently does not offer its healthcare software platform capabilities or care delivery capabilities on a cross-border basis In addition, WELL has significant exposure to the U.S. dollar as over 60% of its revenues, Adj. EBITDA and cashflow is generated in U.S. dollars by WELL's US based entities. While tariffs may contribute to a challenging macroeconomic environment, WELL operates in the healthcare sector, which is inherently defensive, recession proof and insulated from much of the volatility affecting other industries.
The Company's combined Canadian clinic acquisition growth pipeline remains strong, with 34 potential opportunities under evaluation, collectively generating $450million in revenues. This robust pipeline reflects WELL's disciplined and strategic approach to expansion, focusing on value-accretive opportunities that align with its long-term growth strategy.
Footnotes:
1.
This quantum of sales pipeline represents WELL's estimated total public sector sales pipeline. It includes products and services that may be sold by WELL, either sourced or developed directly by WELL or through affiliated Canadian companies. The opportunities noted may represent multi-year sales cycles and may or may not materialize at all, with decisions potentially occurring in calendar year 2025 and/or beyond.
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL's mission is to tech-enable healthcare providers. We do this by developing the best technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. WELL's comprehensive healthcare and digital platform includes extensive front and back-office management software applications that help physicians run and secure their practices. WELL's solutions enable more than 41,000 healthcare providers between the US and Canada and power the largest owned and operated healthcare ecosystem in Canada with more than 200 clinics supporting primary care, specialized care, and diagnostic services. In the United States WELL's solutions are focused on specialized markets such as the gastrointestinal market, women's health, primary care, and mental health. WELL is publicly traded on the Toronto Stock Exchange under the symbol "WELL" and on the OTC Exchange under the symbol "WHTCF". To learn more about the Company, please visit: www.well.company
This news release contains "Forward-Looking Information" within the meaning of applicable Canadian securities laws, including, without limitation: statements regarding the Company's growth prospects, acquisition strategies, and the impact of governmental policies on its business operations. Forward-Looking Information is based on a number of estimates and assumptions are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond WELL's control, which could cause actual results and events to differ materially from those disclosed in this news release. Forward-Looking Information generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe", "goal" or "continue", or the negative thereof or similar variations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the Forward-Looking Information and the Forward-Looking Information is not a guarantee of future results or performance. WELL's comments expressed or implied by such Forward-Looking Information are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL's control, and undue reliance should not be placed on such information. Forward-Looking Information are qualified in their entirety by inherent risks and uncertainties, including: the performance of teh company's M&A growth program and/or the company's public sector sales opportunities. WELL's ability to capitalize on its public sector funnel and continue the organic or inorganic growth that it has had in the past; direct and indirect material adverse effects from adverse market conditions; risks inherent in the primary healthcare sector in general; regulatory and legislative changes; litigation risk; that future results may vary from historical results; an inability to realize the expected benefits and synergies of acquisitions; that market competition may affect the business, results and financial condition of WELL and other risk factors identified in documents filed by WELL under its profile at www.sedar.com, including its most recent Annual Information Form and its most recent Management, Discussion and Analysis. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.
