Wellness retailer HCWC to become data center firm in reverse merger
What's the deal? US wellness retailer Healthy Choice Wellness Corp.Dealroom has a profile for this one. Try Dealroom → (HCWC) has agreed to a reverse merger with data center firm Host Digital InfrastructureDealroom has a profile for this one. Try Dealroom →, under which Host Digital becomes a wholly owned subsidiary and takes control of 96% of the combined company. The deal, signed on May 27, 2026, would give the data center firm a route to public listing. Harmol Samra, who heads private equity firm 10X Infrastructure PartnersDealroom has a profile for this one. Try Dealroom →, will become HCWC's chief executive officer.
Why now? HCWC's balance sheet is under strain. A recent 10-Q filing reported cash and equivalents of $900,000, negative working capital of $6.6 million, and net losses of $6.7 million for the six months to June 30, 2026 — enough to raise "substantial doubt about the company's ability to continue as a going concern."
What's the endgame? HCWC, the holding company behind wellness retailers including Ellwood ThompsonDealroom has a profile for this one. Try Dealroom →'s and GreenAcres MarketDealroom has a profile for this one. Try Dealroom →, is "evaluating the performance of existing stores and rightsizing operations" to cut cash burn. The merger is meant to shore up that balance sheet while Host Digital gains a public vehicle.
The other number: On August 7, Host Digital signed a 15-year lease with an unnamed cloud infrastructure company for 43MW of capacity at its Northeast Oklahoma facility. The deal is expected to generate $1.25 billion in base-term revenue, rising to $3.2 billion if renewal options across a possible 30-year term are exercised. Revenue starts in the first quarter of 2027.
What's next? Stockholders vote on the merger at a special meeting on August 27.
The signal: HCWC joins a wave of unrelated firms — from shoe brand AllbirdsDealroom has a profile for this one. Try Dealroom → to a Malaysian Hard Rock CafeDealroom has a profile for this one. Try Dealroom → franchise owner — pivoting into data centers amid soaring demand for AI and cloud capacity. Unlike many of them, HCWC says it intends to keep its wellness operations running, and is even eyeing new store locations to improve economies of scale.
Read more: datacenterdynamics.com
Image credit: cbowns
