- Investment company, Global Care Capital (HLTH) has entered into a letter of intent for the acquisition of Healthview Technologies
- The company plans to issue 20 million common shares and 10 million purchase warrants, in exchange for all Healthview securities
- Global Care will also issue up to 20 million more shares if Healthview meets certain performance milestones before 2021 ends
- The proposed transaction, and its terms, are subject to the companies entering a definitive agreement by August 30, 2020
- Global Care Capital (HLTH) is down 22.22 per cent and is currently trading at C$0.07 per share
Investment company, Global Care Capital (HLTH) has entered into a letter of intent for the acquisition of Healthview Technologies.
Healthview is a provider of wellness support and mental health solutions, using online tools. The company’s virtual care platform is of particular interest to Global Care, in light of growing demand for telehealth services.
Global Care’s CEO, Alexander Somjen, commented on the proposed acquisition.
“We are excited about the opportunity to bring Healthview under the Global Care umbrella. Telehealth is an important and growing sector, especially given the current times.
“Healthview’s virtual care platform will hopefully help fulfil growing employer demand for digital healthcare solutions for their workforce and prove complementary to Global Care’s existing healthcare-related portfolio companies,” he said.
While the company has entered an LOI, the proposed transaction is subject to the companies entering a definitive agreement. This must happen by August 30, 2020, or another date which the companies mutually agree upon.
If the acquisition does go ahead, it will likely take place through the exchange of shares. Global Care plans to issue 20 million of its common shares to Healthview shareholders at nine cents each.
The company will also issue Healthview warrant-holders with 10 million common share purchase warrants. Each consideration warrant will allow the holder to buy one more Global Care common share for five cents, until August 5, 2021.
In exchange, Global Care will acquire all of the issued and outstanding securities in Healthview Technologies.
In addition to the consideration shares and warrants, the company may also issue performance shares. If Healthview meets certain performance milestones by December 31, 2021, Global Care will issue up to 20 million additional common shares.
Global Care Capital (HLTH) is down 22.22 per cent and is trading at C$0.07 per share at 10:36am EDT.