By Rebecca Melvin
New York, June 19 – WELL Health Technologies Corp. sold an additional C$1 million of 8% convertible debentures due 2024, bringing the total size of the private placement deal up to C$10.5 million, according to a company news release.
The debentures sold at a price of C$1,000 per convertible debenture.
The original tranche of C$8 million convertible debentures plus C$1.5 million greenshoe priced on May 30 via a syndicate of underwriters led by GMP Securities LP. They sold at a conversion price of C$0.95 per common share, and at a 36% premium to the closing share price that day.
The debentures can be converted after one year if the daily volume weighted average trading price of the shares is greater than C$1.25 for any 20 consecutive trading days.
Upon a change of control, the noteholders will have the right to require the company to repurchase the notes, in whole or in part, at 104 plus accrued interest, convert the debenture into a new debenture at 104 if the change of control represents a new issuer or convert the debentures at the conversion price.
The debentures and any common shares issuable upon conversion will be subject to a statutory hold period of four months and one day after the closing date.
Vancouver, B.C.-based WELL Health operates 19 medical clinics and an electronic medical records business.
| Issuer: | WELL Health Technologies Corp.
|
| Securities: | Convertible debentures
|
| Amount: | C$1 million
|
| Maturity: | June 30, 2024
|
| Coupon: | 8%
|
| Price: | Par of C$1,000
|
| Yield: | 8%
|
| Call option: | After one year, if the daily VWAP is more than C$1.25 for 20 consecutive trading days
|
| Stock symbol: | Canada: WELL
|
| Total deal size: | C$10.5 million
|
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