HEALWELL AI Inc. (TSE: AIDX) (OTCMRKTS: HWAIF) has picked up a USD$50 million credit arrangement in support of an acquisition of global healthcare intelligence platform, Orion Health Holdings.
Announced on Tuesday, Orion Health provides subscription licenses and services to healthcare authorities and governments. These licenses provide access to digital health records, data interoperability, digital front door, population health insights and other services. The credit comes from both The Bank of Nova Scotia and the Royal Bank of Canada, which will act as bookrunner, admin agent, and will share lead arranger duties.
Orion Health, a global leader in healthcare technology with customers in 11 countries, serves nearly 150 million people worldwide. By acquiring Orion Health, Healwell will expand its reach, using Orion’s advanced healthcare data systems to deliver its AI-driven solutions. This acquisition will also help Healwell grow thanks to Orion Health’s strong government ties and broad customer base.
The credit agreement includes a USD$20 million term loan and a USD$30 million revolving credit facility, providing total aggregate proceeds of USD$50 million. It also features an additional uncommitted future accordion option of up to USD$25 million.
Orion Health and its subsidiaries will secure the company’s obligations under the credit agreement and other loan documents with their assets and share pledges. Access to credit under the agreement depends on meeting or waiving several conditions precedent typical for loans of this nature. Furthermore, this includes Healwell’s completion of Orion Health’s acquisition.
“Securing this credit facility will solidify our balance sheet and provide us with the financial stability needed to execute on our strategic growth initiatives,” said Anthony Lam, CFO of Healwell.
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Healwell has waived all closing conditions
The company has secured over USD$100 million to fund its Orion Health acquisition. Additionally, the company is now ready to begin the reorganization and move toward closing.
Healwell and the seller have officially signed the trigger notice under the Orion Health share purchase agreement. Healwell has also paid a non-refundable NZD$5 million advance to start the pre-closing reorganization. The company now aims to complete the acquisition by April 1, 2025.
By signing the trigger notice, both Healwell and the seller have met or waived all closing conditions. The only exceptions include the pre-closing reorganization and paying the purchase price.
According to a report from marketing research firm, Grandview Research, the global healthcare technology market was valued at USD$390 billion. The report also projects it to grow at a compound annual growth rate (CAGR) of about 17-18 per cent from 2024 to 2030.
This growth is driven by increasing demand for digital health solutions, advancements in AI and data analytics, and a global push for better healthcare management and early disease detection. The market encompasses areas such as healthcare IT, telemedicine, AI-driven health solutions, electronic health records (EHR), and health data analytics, all of which Orion Health and Healwell are targeting.
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joseph@mugglehead.com
