Q: Forgive my skepticism, but should long term WELL investors be worried about being left holding the bag with the Wellstar spin off?
5i Research Answer:
If the company were to fail, and was not spun off, WELL shareholders would still of course be negatively impacted. It is a small company, but has good growth potential. WELL executives (and us) do not believe the value of the company is being reflected in the market. The spin out will highlight that there is a very fast growing company embedded within WELL. WELL will likely retain a large ownership position as well. There are no guarantees but we would certainly not say the company is 'dumping' a 'problem' on shareholders, but rather trying to enhance overall shareholder returns.