HEALWELL AI Announces $16 Million Bought Deal Private Placement

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TORONTO, May 06, 2024 (GLOBE NEWSWIRE) -- HEALWELL AI Inc. ("HEALWELL" or the "Company") (TSX: AIDX), a data science and AI company focused on preventative care, is pleased to announce that it has entered into an agreement pursuant to which Clarus Securities Inc. and Eight Capital, as lead underwriters and co-bookrunners, together with a syndicate of underwriters (collectively, the “Underwriters”), will purchase 11,851,900 units of the Company (the “Units”), on a “bought deal” private placement basis, at a price of $1.35 per Unit (the “Issue Price”) for gross proceeds of $16,000,065 (the “Offering”).

Each Unit will be comprised of one Class A subordinate voting share of the Company (a “Share”) and one-half of one Share purchase warrant (each whole warrant, a “Warrant”) of the Company. Each Warrant shall entitle the holder thereof to purchase one Share at an exercise price of $1.80 for a period of two (2) years following the closing of the Offering.

The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 15% of the Units at the Issue Price, exercisable in whole or in part, at any time on or prior to the date that is two (2) business days prior to the closing of the Offering. If the over-allotment option is exercised in full, an additional $2,400,010 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be $18,400,075.

The Company intends to use the net proceeds of the Offering for growth initiatives and for general corporate and working capital purposes.

The closing of the Offering is expected to occur on or about May 24, 2024, or such other date as the Company and the Underwriters may agree and is subject to certain conditions, including the receipt of all necessary approvals, including conditional approval from the Toronto Stock Exchange.

The Units to be issued under the Offering will be offered to purchasers in Canada pursuant to the prospectus exemptions available under applicable securities laws. The Units may also be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and such other jurisdictions as agreed between the parties. All securities issued under the Offering will be subject to a hold period expiring four months and one day from the closing of the Offering in accordance with applicable Canadian securities laws.