Mr. Hamed Shahbazi reports

WELL HEALTH REPORTS RECORD REVENUE FOR SECOND QUARTER 2019

Well Health Technologies Corp. has released its condensed interim consolidated financial statements and interim management's discussion and analysis -- quarterly highlights for fiscal second quarter ended June 30, 2019.

Highlights:

• Revenue increased by 258 per cent to $7,402,271 in the three-month period ended June 30, 2019, compared with the three months ended July 31, 2018.
• Well continued to be an active acquirer during the second quarter as the company completed the acquisition of OSCARprn -- Treatment Solutions Ltd. on June 12, 2019. Subsequent to quarter-end, Well completed the acquisition of Kela Atlantic Inc. (KAI Innovations) on July 1, 2019, and, on July 18, 2019, the company announced its entry into a definitive agreement to acquire a majority ownership stake in SleepWorks Medical Inc.
• As of June 30, 2019, Well operated 19 wholly owned primary health care clinics and provided digital electronic medical records (EMR) services to 292 clinics. Subsequent to the quarter, upon closing of the KAI Innovations acquisition, the company's EMR software-as-a-service (SaaS) business grew to support approximately 852 medical clinics and more than 4,000 doctors and other medical practitioners across the country.
• Well ended the quarter with a strong balance sheet with $6,687,904 in cash and cash equivalents. The company also recently completed a bought deal private placement of special warrants for gross proceeds of $15,007,500, which closed on Aug. 15, 2019.

On Dec. 11, 2018, the board of directors approved a resolution to change the company's year-end from Oct. 31 to Dec. 31. Accordingly, the condensed interim consolidated financial statements for the period ended June 30, 2019, include the results for the three months and six months ended June 30, 2019, with comparatives for the three months and six months ended July 31, 2018.

Second quarter financial and business highlights:

• Well achieved record quarterly revenue of $7,402,271 during the three months ended June 30, 2019, compared with $2,066,524 revenue generated during the three months ended July 31, 2018 -- an increase of 258 per cent.
• Gross margin increased to 30.4 per cent in the three months ended June 30, 2019, compared with 28.4 per cent in the three months ended July 31, 2018, mainly due to the addition of higher-margin digital services revenue.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss was $556,255 for the three-month period ended June 30, 2019, compared with adjusted EBITDA loss of $287,054 in the three-month period ended July 31, 2018.
• On June 12, 2019, Well completed its acquisition of OSCARprn, which provides OSCAR-based EMR software and services to 71 clinics in British Columbia, supporting approximately 820 registered doctors and practitioners.
• On June 13, 2019, Well completed a bought deal private placement offering of senior unsecured convertible debentures for a total aggregate principal of $10.5-million. Li Ka-shing and Well's senior management team, inclusive of the company's chief financial officer and chief executive officer, also participated in this convertible debenture offering.

"Q2 was an excellent quarter for us, which demonstrated continued strong clinical revenue growth and increasing gross margin from our SaaS-based EMR service," said Hamed Shahbazi, chairman and chief executive officer of Well. "In addition, the recently completed acquisition of KAI Innovations has been a very strong fit with our prior EMR-related acquisitions and has spurred new growth and expanded capabilities in our EMR business. Also, to our knowledge, it firmly positions us as the third-largest EMR service provider in Canada. Furthermore, our recent financing transactions give us a strong balance sheet to execute on our future acquisition growth strategy. Well management continues to be very focused on securing new acquisitions to grow both its clinical and digital portfolios in a manner that is highly accretive to shareholder value both in the short and long term."

Subsequent events:

• On July 1, 2019, the company completed the acquisition of KAI Innovations for approximately $10.75-million. KAI Innovations provides SaaS-based EMR services to approximately 562 clinics in Ontario, supporting approximately 2,100 registered doctors and practitioners.
• On July 18, 2019, the company announced that it had entered into a definitive share purchase agreement with the shareholders of SleepWorks, a company engaged in the diagnosis and treatment of sleep disorders, pursuant to which Well has agreed to acquire 51 per cent of the issued and outstanding shares of SleepWorks, with an option to acquire the remaining 49 per cent in the future. The remaining 49 per cent of the issued and outstanding shares of SleepWorks will be retained by the former principal shareholders of SleepWorks, who will continue to operate the company on a postclosing basis.
• On Aug. 15, 2019, the company announced that it had closed its previously announced bought deal private placement of 10.35 million special warrants of the company at a price of $1.45 per special warrant, for gross proceeds of approximately $15,007,500. Each special warrant will entitle the holder to one common share capital of the company, subject to the terms and conditions of the special warrant. The financing included subscriptions by Mr. Ka-shing and Well's senior management team, inclusive of the company's chief executive officer, chief financial officer and senior vice-president of strategic partnerships and marketing.

Outlook

Well expects fiscal Q3 revenue to benefit from a full quarter of contribution from the OSCARprn and KAI Innovations acquisitions. The company continues to execute on its 2019 growth strategy by focusing on the following:

• The company will achieve organic revenue growth by attracting and retaining physicians and patients, by offering new revenue generating services and by winning new clinic customers for its EMR software and services business.
• In-organic growth is obtained by developing an active pipeline of potential acquisition opportunities, including accretive health clinics, OSCAR-based EMR service providers and other digital health-related technologies.
• It will realize operational excellence through the use of technology and shared services infrastructure to support its doctor partners and service its patients.

Conference call

Well will hold a call to discuss its 2019 second quarter financial results on Thursday, Aug. 22, 2019, at 1 p.m. ET/10 a.m. PT. Please use the following dial-in numbers: 1-416-764-8609 (Toronto local) or 1-888-390-0605 (toll-free), with conference ID 54030543.

The company will provide a replay of the call which will be accessible for seven days. To access the replay, use the following dial-in numbers: 1-416-764-8677 or 1-888-390-0541, with playback passcode 030543, followed by the number sign.

About Well Health Technologies Corp.

Well is a unique company that operates 19 primary health care facilities delivering approximately 600,000 patient visits per year, as well as an EMR SaaS business that provides thousands of doctors with digital practice management software solutions. Well's overarching objective is to empower doctors to provide the best and most advanced care possible, leveraging the latest trends in digital health.

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