Yahoo Finance
Oct. 15, 2025
Q2 2025 Data
Price: $5.00, Shares: 254m, Cap: $1.26B
Summary
*A Canadian health care technology and clinic aggregator with some unsuccessful acquisitions in the 2021 market peak time. The share price hasn't recovered for several years since peaked in 2021 as well.
*If the planed divesting of US assets turns out fine, and it can focus on growing its Canadian business. Its Canadian clinic & lab could be doing very well with high organic growth and a lot of aggregation potential.
*It controls (>50% ownership) the public traded HealWell AI(TSE:AIDX) company. It also plans to IPO its health tech subsidiary called WellStar. Both could be very valuable to the company.
Business
(1) History
The company was founded by Hamed Shahbazi in 2018 after his public traded company TIO Networks was acquired by Paypal in 2017 for $304m. The company was set to consolidating and modernizing healthcare clinics and digital services.
In 2020, it went public on TSX. In the same year, it acquired Circle Medical, a U.S. telehealth provider, for around $14m.
In 2021, the Li Ka‐shing (李嘉诚), the Hong Kong billionaire, invested around $300m in the company at around $10/share. The company used the funding to acquire U.S.-based CRH Medical for USD$370 million. Later, it acquired MyHealth Partners Inc. which owns more than 40 diagnostic centres in Ontario for more than $200m. It also acquired U.S.-based women’s health company WISP for $40m. By 2021, its debt has raised to $400m.
The acquisition of its US assets seems quite expensive and not performing as they hoped. In 2024, the company planned to divest all 3 US subsidiaries. For the first step, sell WISP and Circle medical by 2025.
Currently, the company is also planing to IPO its health-tech subsidiary called WellStar by end of 2025.
(2) Product & Services
Canadian Clinics & Diagnostic Centres: Currently it operates around 220 medical clinics and diagnose centres in Canada.
HealWell AI(TSE:AIDX): As Q2 25, WELL owns 37% economic interest and controls over 60% voting of AIDX. HealWell grew its revenue mainly through acquisitions. At Q2 2025, it generated around $40m in revenue and 2m in adjusted EBITDA. The current market cap of AIDX is around $400m.
WellStar: Healthcare-technology solutions, Electronic Medical Record (EMR), digital health, back-office billing. Etc. In 2024, it generated $45m revenue and $13m EBITDA. In Q2 2025, it generated $16.8m revenue and $4.4m in EBITDA.
US Subsidiaries:
Circle Medical: Acquired in 2020 for around US$14.3m. It is a U.S. telehealth / virtual primary care company. At the time of the acquisition, Circle had around a $5m revenue run rate. On Mar. 2025, WELL revealed a revenue recognition issue with Circle Medical.
WISP: Acquired in late 2021 for around US$41m. WISP was a growing U.S. telehealth/digital women’s-health business. At the time of the acquisition, it had a revenue run rate of US$30m per year.
After Q3 2022, the company reported the combined business of Circle and WISP had exceeded a revenue run rate of US$100m per year.
CRH Medical: Acquired in early 2021 for around US$370m. CRH was a high-margin roll-up platform for anesthesia and GI services in the U.S. In Q2 2025, it reported around $120m in revenue and $15m in Adj. EBITDA.
(3) Industry
Currently, there are around 10k medical clinics in Canada. WELL is account around 2% of total.
Major competitors:
ELNA Medical: around 100 clinics, mainly in Quebec. If filed for bankruptcy protection in 2024.
(4) Seasonality
(5)Employees
2. Management
(1) Management
Hamed Shahbazi: He was the founder of TIO Networks. It was sold to Paypal in 2017. He worked for Paypal briefly and left in 2018 to work on WELL. It seems many of top management in WELL, AIDX, and WellStar are from his old TIO Networks company.
(2) Ownership and Compensation
Hamed Shahbazi: Around 15.5m shares. His compensation is around $500k cash + RSUs($6m for 2023, $700k for 2024).
Solina Chau:
Solina(Hoi Shuen) Chau (周凯旋) is Li Ka-shing's long time business partners. In 2024, it looked like Li Ka-shing had transferred all his shares in WELL to Solina Chau. By 2024, Solina Chau owns around 36m shares of WELL, around 15%. During the same year, Sybil Lau, a related person of Solina Chau was elected as a director of WELL.
3. Financial data
Notes: debt
around $600m debt.
Notes: Share Data
Options:
4. Valuation and comments
(1) The company should be valuated at the Canadian clinic & lab business + HealWell + WellStar + US assets - net debt.
(1) The company should be valuated at the Canadian clinic & lab business + HealWell + WellStar + US assets - net debt.
(2) The Canadian clinic business might be worth around 2x to 3x of its current revenue level of $400m given it is fast growth and potential. It should be worth around $800m to $1.2B.
(3) The 3 US business might get the original price it paid for, which should roughly covers the $600m debt.
(4) The HealWELL and WellStar holdings are hard to valuate. I would just put $300m as a rough number.
(5) Put all together, it could be roughly valued around $1.1B to $1.5B after removing the debt and the US subsidiaries. The current market cap of $1.26B doesn't look very cheap. However, the potential of the business is very bright.
5. Risk
(1) The company's focus seems quite unfocused during the past several years. While it aims to focus on the Canadian clinic business, it still might get distracted for another stuff.
(2) HealWell AI stock has been benefited from the current AI hype. It might be revalued significantly in the future. Also, it is hard to valuate both AIDX and the WellStar.
(3) The US divesting plan might take a long time. It might not get the price that it originally paid for.
(4) The company itself is very complicated with main subsidiaries. It is a very difficult stock to analysis and valuate. The current valuation could be very inaccurate.
6. Conclusion
This company is led by a strong management team and is managed well. There is great potential for it to grow in the Canadian medical clinics sector. However, it is quite a complicated business and it is hard to valuate it. Should keep the position size small.
7. Links
