Healthy Choice Wellness announced plans to shift its business into the digital infrastructure sector through a reverse merger with a data center company. Following the merger, Host Digital Infrastructure is expected to control a majority of HCWC shares as the company seeks to transition into a listed company.
Healthy Choice Wellness Corp. (HCWC) of the United States has entered into a reverse merger agreement with data center company Host Digital Infrastructure and indicated plans to shift its focus from wellness retail to digital infrastructure. HCWC said it aims to improve store-level profitability and reduce cash outflows by evaluating the performance of its existing stores and right-sizing the business.
According to HCWC's quarterly report (Form 10-Q), as of 30 June 2026, cash and cash equivalents stood at $0.9 million, working capital was negative $6.6 million, and the net loss for the past 6 months was $6.7 million. In light of these conditions, the report stated that there was substantial doubt about the company's ability to continue as a going concern.
Under the terms of the agreement, Host Digital is expected to control 96% of HCWC's shares following the merger, while Harmol Samra, representative of 10X Infrastructure Partners, is expected to become HCWC's new CEO.
On 7 August 2026, Host Digital entered into an agreement to lease 43MW of capacity for 15 years at a data center in northeastern Oklahoma to an unnamed private cloud infrastructure company. Revenue during the initial contract term is expected to total $1.25 billion and could reach $3.2 billion with maximum renewals, with revenue recognition scheduled to begin in the first quarter of 2027. A special shareholders meeting is scheduled for 27 August.
While more companies have been rapidly shifting resources into data center operations in recent years, HCWC plans to continue its wellness business and is also considering further store acquisitions in pursuit of economies of scale.