US-based Healthy Choice Wellness Corp. (HCWC) is set to pivot to data centers following a reverse merger.

The holding company is behind a number of wellness retailers and centers, including Ellwood Thompson's and GreenAcres Market, but has signed up for a reverse merger with data center firm Host Digital Infrastructure.

Update -

Stockholders approved the merger on August 27, 2026.

Original story resumes -

As reported by the Richmonder, the move is hoped to ease issues that have led to "substantial doubt about the company's ability to continue as a going concern."

A recent 10Q SEC filing notes that the company had, as of June 30, 2026, the company had cash and cash equivalents of $900,000 and negative working capital of $6.6 million, and for the prior six months had incurred net losses of $6.7m. Thus, the company has "substantial doubt" that it would be able to continue as a going concern.

HCWC is therefore "evaluating the performance of existing stores and rightsizing operations as necessary to improve store-level profitability and reduce cash burn."

In addition, HCWC entered into a merger agreement with Host Digital Infrastructure on May 27, 2026, which will see Host Digital becoming a wholly owned subsidiary of HCWC, thus enabling the data center firm to transition into a publicly listed company, and for HCWC, hopefully improve its balance sheet.

The terms of the agreement would see Host Digital controlling 96 percent of HCWC.

The new CEO of HCWC will be Harmol Samra, who also heads private equity firm 10X Infrastructure Partners.

On August 7th, Host Digital secured a 15-year lease with an unnamed "privately held cloud infrastructure company" for 43MW of capacity at Host Digital's data center in Northeast Oklahoma. The lease is expected to provide $1.25 billion in base-term contracted revenue, and $3.2bn should renewal options be exercised over the 30-year possible term. Revenue will begin in Q1 2027.

Unlike a number of companies not in the data center business that have made unexpected pivots of late, including shoe company Allbirds, a Taiwanese whiskey importer, a recruitment website, a Singaporean healthcare company, an Indian TV production firm, a Chinese car loan financing company, an aviation operator, and an owner of Hard Rock Cafe franchises in Malaysia, HCWC seems to intend to continue its wellness operations for the forseeable future, even looking to acquire new store locations to improve "economies of scale."