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WELL Health Technologies Corp. (WELL $3.95)
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HealWELL AI Inc. Class A Subordinate Voting Shares (AIDX $0.88)
Q: Hello,
What is your analysis of the Competition Bureau investigation and what risks does it pose to Well's future performance?
Thanks
What is your analysis of the Competition Bureau investigation and what risks does it pose to Well's future performance?
Thanks
5i Research Answer:
It is a negative but not hugely negative. It relates to WELL's controlling stake in Healwell and its acquisition of Orion Health. The bureau is concerned that this concentration of entities is resulting in reduced competition for AI transcription and medical record software. In a nutshell, the government is worried that WELL has too high of a market share. This may result in some measures (asset sales, perhaps) to reduce the government's concerns. This could slow growth but there would be renumeration to WELL on any sale. We would note that while WELL has responded to the Globe and Mail, it itself has not put out a press release, which would imply that the company does not think it is a material event.