- WELL Health Technologies (TSX:WELL) has finalised its C$3.94 million investment in telehealth provider, Insig Corporation
- The transaction brings WELL Health’s total investment in the company to $5.94 million
- As part of the deal, WELL Health’s CEO, Hamed Shahbazi, will join Insig’s Board of Directors
- A strategic alliance has also been signed, allowing WELL Health to commercialise the Insig platform under its VirtualClinic+ brand
- WELL Health Technologies (WELL) is holding steady at $1.56 per share, with a market cap of $180.29 million
WELL Health Technologies (TSX:WELL) has finalised its C$3.94 million investment in the telehealth provider Insig Corporation.
Privately owned, Insig is focused on the development of telemedicine platforms and clinical automation software. With over 100,000 current users on their platform, the company’s goal is to remove the administrative burden in medical practice so that doctors can focus on their patients.
Under the terms of the deal, WELL Health, Insig and certain shareholders of Insig entered into a share exchange agreement. In return for 2,625 Class A common shares of Insig, WELL Health issued 2,625,204 of its own common shares at a deemed price of $1.50 each.
This follows a previous investment in Insig of $2 million via a convertible promissory note. Upon conversion of the convertible note, WELL Health’s total investment will be valued at $5.94 million, making the company Insig’s largest shareholder.
Hamed Shahbazi, Chairman and CEO of WELL Health Technologies, said that this is an exciting time for both companies.
“We are thrilled to be partnering with the Insig team to deliver highly accessible quality healthcare for Canadians at this critical time.
“Also, I am personally looking forward to serving on the Insig board and furthering the success of what we believe to be the most exciting telehealth platform in the country,” he said.
In his role with Insig’s board, Hamed will support Insig’s efforts to grow and meet the rapidly expanding need for telehealth services among Canadian doctors and patients.
In conjunction with the investment, WELL Health and Insig entered a strategic alliance. Under the alliance, WELL Health will be able to commercialise and launch the Insig platform on a private label basis under its VirtualClinic+ brand.
Matthew Mazzuca, CEO of Insig, also commented on the deals, saying he is excited to have WELL Health as both an investor and partner.
“WELL’s leadership and network in the healthcare industry is a great fit with our technology platform.
“Working together we can deliver a telehealth solution that meets the needs of Canadian doctors while improving patient access to healthcare,” he said.
WELL Health Technologies (WELL) is currently steady at $1.56 per share at 10:06am EST.