HEALWELL AI Inc. Announces Upsize of Bought Deal to Up to $20 Million

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

TORONTO, May 06, 2024 (GLOBE NEWSWIRE) -- HEALWELL AI INC. (“HEALWELL” or the “Company”) (TSX: AIDX) is pleased to announce today that, due to strong demand, it has agreed with Clarus Securities Inc. (“Clarus”) and Eight Capital Corp. (“Eight”), as Co-Bookrunners and Co-Lead Underwriters (the “Co-Lead Underwriters”), on behalf of a syndicate of underwriters (collectively, the “Underwriters”), to increase the size of its previously announced C$16,000,065 “bought deal” offering. Pursuant to the upsized deal terms, the Underwriters have agreed to purchase, on a “bought deal” basis 12,592,600 units of the Company (the “Units”) at a price of C$1.35 per Unit (the “Offering Price”) for aggregate gross proceeds to the Company of C$17,000,010 (the “Offering”).

The Company has agreed to amend the terms of the agent’s option granted to the Underwriters in order to permit the Underwriters to purchase up to an additional 2,222,400 Units at the Offering Price. The option is 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. In the event the option is exercised in full, the aggregate gross proceeds of the Offering will be C$20,000,250.

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

The Offering is expected to close on or about May 24, 2024 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful. No securities may be offered or sold to, or for the account or benefit of persons in the United States or to any U.S. persons or in any other jurisdiction in which such offer or sale would be unlawful absent registration under the U.S. Securities Act, and any applicable state securities laws or an exemption therefrom or qualification under the securities laws of such other jurisdiction or an exemption therefrom. “United States” and “U.S. persons” shall have the meaning given to them in Regulation S under the U.S. Securities Act.