WELL has exercised options and its acquiring a controlling and majority interest in AIDX. WELL will acquire 30.8M Class A subordinate and 30.8M Class B multiple voting shares of AIDX, giving it 37% economic interest and 69% voting interest in AIDX. WELL owned purchase warrants and convertible debentures in the company and exercised all of its rights. AIDX is expected to contribute $160M in revenue with positive EBIDTA to WELL over 12 months. The deal is concurrent with WELL's closing of the Orion Health acquisition (expected tomorrow). WELL also reported some annual numbers. Patient visits rose 32% to 5.7M, driven mostly by organic growth of 30%. We would still not consider the delayed financial filings hugely material, but the market is scared and it certainly hurts confidence. AIDX has, to date, been a relatively low revenue company, and its AI-connection may be a negative for investors now as opposed to a positive sentiment. But overall a combination has been largely expected for some time, and we would not see these transactions as long term negatives for the company.
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