Well Health (TSX:WELL) & CRH Stocks Skyrocket On Acquisition News - Kalkine Media

February 08, 2021 09:41 AM EST | By Hina Chowdhary
Follow us on Google News:

Summary

  • Canadian health care service provider WELL Health Technologies Corp has announced its plans to acquire medical equipment maker CRH Medical Corp on Monday, February 8.
  • While WELL Health’s stocks were up over 21 per cent on Monday morning, CRH Medical shares reflected a growth of about 80 per cent (10AM EST).
  • WELL Health CEO and Chairperson Hamed Shahbazi described the acquisition deal as “monumental”.

Stocks of Canadian health care service provider WELL Health Technologies Corp (TSX:WELL) surged after it announced plans to acquire medical equipment maker CRH Medical Corp (TSX:CRH) on Monday, February 8.

While WELL Health’s stocks were up over 21 per cent on Monday morning, CRH Medical shares reflected a growth of about 80 per cent (9:30AM EST).

In an official statement, WELL Health said that it will be buying all of CRH Medical’s shares at a price of US$ 4 per share, bringing the total purchase price to US$ 292.7 million and the transaction value to US$ 369.2 million.

Let’s take a closer look at these two companies’ profiles.

WELL Health Technologies Corp (TSX:WELL)


WELL Health CEO and Chairperson Hamed Shahbazi described the acquisition deal as “monumental” for the company as it will not only help “significant boost” its revenue and EBITDA positions, but also improve its operations in the United States.

WELL Health added that is has also signed agreements with a group of investors to raise proceeds of around C$ 295.5 million in a non-brokered offering , which will take place at a price of C$ 9.8 per share.

While the equity offering is set to close by February 15, while the acquisition is expected to be complete by 2021’s second.

Stocks of WELL Health have improved by nearly seven per cent in February so far and by over 80 per cent in the last six months.

©Kalkine Group 2021

CRH Medical Corp (TSX:CRH)


Once the deal goes through, CRH Medical Chairperson and CEO Dr Tushar Ramani is expected to continue heading the company. WELL Health, meanwhile, will look into digitizing and modernizing CRH Medical’s operations.

The closer of the acquisition deal will require the approval of at least two-thirds of CRH Medical’s shareholders, the company pointed.

CRH Medical’s stocks ballooned by over 248 per cent in February so far and by about 220 per cent this year.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.



Top TSX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK