WELLSTAR to list on TSXV with US$36.7M raise, spun out of WELL Health
What's the deal? WELL Health TechnologiesDealroom has a profile for this one. Try Dealroom → is spinning out its healthcare software subsidiary, WELLSTAR Technologies, into a standalone public company on the TSX Venture Exchange. The move is backed by a concurrent private placement of subscription receipts targeting roughly US$36.7M in gross proceeds. TD SecuritiesDealroom has a profile for this one. Try Dealroom →, RBC Capital MarketsDealroom has a profile for this one. Try Dealroom →, and Stifel Nicolaus CanadaDealroom has a profile for this one. Try Dealroom → lead the syndicate on a best-efforts basis.
What does WELLSTAR do? It is a pure-play healthcare technology company serving more than 40% of providers across Canada with electronic medical records, AI-enabled clinical tools, and practice management software. WELLSTAR expects about US$69.7M of revenue in 2026, a 21% adjusted EBITDA margin, and a historical three-year organic revenue growth rate above 20%.
The mechanics: WELLSTAR will amalgamate with 1587818 B.C. Ltd. to form the resulting issuer, whose subordinate voting shares will list on the TSXV. Subscription receipts are priced at US$7.33 each, with the financing anchored by a large Canadian bank-owned asset manager and existing shareholders. The placement is expected to close around July 29, 2026, and the transaction around September 16, 2026.
Why now? WELL says the listing crystallises the value of WELLSTAR's assets through an independent public market valuation, while giving it a dedicated acquisition currency for growth. WELL will remain a significant long-term shareholder after the spinout.
What's the endgame? Chairman and chief executive officer Hamed Shahbazi called the deal "a significant milestone in WELL's strategy to unlock the value of our healthcare technology assets while retaining a meaningful ownership position." A standalone listing gives WELLSTAR "greater access to growth capital and increased visibility with investors," he said.
The signal: The raise sits in the 44th percentile by amount — a mid-sized deal rather than a headline one. But the structure is notable: rather than sell or fully hold the unit, WELL is unlocking value through a public spinout while keeping a stake, a route that could appeal to other operators sitting on profitable software assets inside larger holding structures.
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