08:41 AM EDT, 05/06/2024 (MT Newswires) -- Healwell AI (AIDX.TO), an AI and data science company, on Monday said it will raise $16 million in a bought deal private placement that will fund growth initiatives and provide general working capital.

The company will issue 11.8 million units, at $1.35 each. Each unit will be comprised of one Class A subordinate voting share and half a share purchase warrant. Each warrant is exercisable for two years for one share at $1.80.

The underwriters have been granted a 15% over-allotment option, which, if exercised in full, will yield an additional $2.4 million, bringing the total proceeds to $18.4 million.

The offering is expected to close about May 24.

Healwell closed 5.6% lower on Friday.