Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


'Topline Beat, All Eyes on Potential M&A' by Health Technologies Firm
Research Report

Share on Stocktwits


An update on the Canadian company, including its Q2/19 results and its next expected catalyst, is provided in a Haywood report.

In an Aug. 23 research note, analyst Daniel Rosenberg reported that his firm Haywood increased its price target on WELL Health Technologies Corp. (WELL:TSX.V; WLYYF:OTCMKTS) to CA$1.80 per share from CA$1.70 because the company, continuing to invest in growth, is likely about to acquire another entity.

Already, WELL Health is buying a 51% interest in SleepWorks Medical for CA$1.134 million and the option to purchase the remaining 49%, noted Rosenberg. The transaction is slated to close in September.

This deal comes on the heels of WELL Health recently completing a bought deal financing for gross proceeds of CA$15 million. Even after the SleepWorks transaction, WELL Health currently has an estimated $20 million in cash on hand, "leaving it ample room to pursue mergers and acquisitions (M&A)," Rosenberg indicated.

In other news, Rosenberg reported that WELL Health's Q2/19 results "were positive and ahead of expectations on the topline." Q2/19 revenue was CA$7.4 million versus consensus' forecast of CA$7 million. This represents a 258% revenue increase year over year.

WELL Health operates primary healthcare facilities and an electronic medical records business. The former accounts for most, or 88%, of total revenue, however, recent M&A activity will "shift more revenue toward tech," Rosenberg commented. "We expect new initiatives within clinics and recent M&A to provide incremental revenue for the year and help drive some margin improvement."

Haywood has a Hold rating on WELL Health because "shares remain ahead of themselves," given about "10% exposure of tech revenue and limited synergies from acquisitions extracted to date," explained Rosenberg. The current share price is about CA$1.65.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Haywood Securities,WELL Health Technologies Corp., Research Report, August 23, 2019

Analyst Certification: I, Daniel Rosenberg, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures
Of the companies included in the report the following Important Disclosures apply:
▪ Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for Well Health Technologies Corp. (WELL-V), in the past 12 months.
Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.

Research policy is available here.

Want to read more about Healthcare Services investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe