WELL Subsidiary WELLSTAR Technologies Closes $62M Financing to Support Its Pre-Spinout Growth Strategy

Executive Summary

• WELLSTAR Technologies Corp. completed its Series B financing, raising approximately $62 million by issuing 41,352,598 Series B Preferred Shares at $1.50 per share.
• The proceeds will be used for future acquisitions, AI‑related innovation, organic growth initiatives and general corporate purposes, supporting WELLSTAR’s pre‑spinout objectives and its target public listing in 2026.
• The financing builds on a prior Series A round that raised $50.4 million at $1.00 per share, underscoring strong investor support from Mawer Investment Management, Edgepoint Wealth Management and PICTON Investments.

Key Details

• Series B Offering: 41,352,598 preferred shares @ $1.50 each → gross proceeds ≈ $62 million.
• Investors: Mawer Investment Management Ltd., Edgepoint Wealth Management Inc., PICTON Investments (three of Canada’s prominent fund investors).
• Series A Reference: Prior round in Dec 2024 raised $50.4 million at $1.00 per share.
• Share Rights: Series B shares have substantially the same rights and restrictions as Series A shares.
• Conversion & Redemption: Automatically convert to subordinate voting shares upon a qualifying IPO, reverse‑takeover listing, or other liquidity event; not entitled to dividends until 2026, thereafter accruing quarterly dividends (notional) and redeemable after Dec 31 2026 at holder option.
• Governance: Holders entered into amended & restated shareholders’ and governance agreements granting standard investor rights until WELLSTAR ceases to be private.
• Use of Proceeds: Targeted for future acquisitions, AI‑related innovation, organic growth initiatives, and general corporate purposes.
• Agents: Cormark Securities (sole bookrunner), Beacon Securities, Stifel Nicolaus Canada – co‑lead agents on the syndicate.
• Public Listing Goal: WELLSTAR aims to list publicly in 2026, separating from WELL’s clinical operations to give investors direct exposure to a high‑growth SaaS healthcare technology business.

Notable Quotes

• “The Series B financing further strengthens our balance sheet and provides the capital needed to accelerate acquisitions, AI innovation, and organic growth as we prepare for a 2026 public listing.” – Hamed Shahbazi, CEO, Chair & Director, WELL Health Technologies Corp.