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Highlights:
- Healthia has requested to put its shares under trading halt from today onwards.
- The company has planned to raise up to AU$15 million in shares to fund a series of acquisitions.
- The company is expected to initiate normal trading from Monday (12 September) morning.
Leading healthcare firm Healthia Limited (ASX:HLA) has put its shares under trading halt from Thursday morning onwards (8 September 2022). The securities of the company are likely to remain at a trading halt until the commencement of normal trading on Monday (12 September 2022).
The company requested ASX to put its shares under trading halt due to the release of an announcement related to the institutional component of its accelerated entitlement offer.
Meanwhile, the shares of Healthia traded last at AU$1.520 per share as of 7 September 2022.
What else is happening within Healthia?
Today, Healthia also announced its new acquisition strategy and capital raising plan on ASX. The company will be raising up to AU$15 million in shares to fund acquisition of Sunshine Coast Hand Therapy, Watsonia Physiotherapy and Corio Bay Health Group.
Details of Healthia’s new acquisitions:
Healthia shared that it has entered into binding agreements to acquire the following businesses:
- The acquisition of the hand therapy business, Sunshine Coast Hand Therapy, located on the Sunshine Coast, Queensland.
- Acquisition of a physiotherapy business, Watsonia Physiotherapy, located in Watsonia, Victoria.
- Lastly, the acquisition of the 9 allied health businesses, Corio Bay Health Group, located throughout the southwest and south-east Melbourne and Geelong, Victoria.
Healthia also revealed that its first acquisition of the financial year, Sunset Coast Hand Therapy, has reached a settlement. Furthermore, if all other precedent conditions are met, then the settlement of Watsonia Physiotherapy and Corio Bay Health Group will also reach a settlement soon, by 30 October 2022.
The following are the total considerations for the proposed acquisitions:
- Upfront cash consideration- AU$6.61 million.
- Issue of clinic class shares- AU$1.68 million.
- Total upfront consideration- AU$8.29 million.
The company believes that these acquisitions will have a significant contribution to Healthia’s annual earnings. Healthia expects these acquisitions to add AU$8.88 million to its annual revenue and AU$1.87 million to the company’s EBITDA.
It is to be noted that the above-mentioned acquisitions are expected to be settled in FY23, and the part-year earnings contribution from each is not included in Healthia’s expected FY23 EBITDA of more than AU$40 million.
Image source: © Sasinparaksa | Megapixl.com
Details of Healthia’s equity raising plan:
Healthia is planning to raise around AU$15 million to support its near-term acquisition opportunities and provide financial flexibility and capital raising costs.
The company has a large active pipeline of potential health acquisition opportunities and is optimistic about its ability to deploy acquisitions worth at least AU$20 million in FY23.
Furthermore, the capital raising will also allow Healthia to strengthen its balance sheet to pursue other organic initiatives.
The company shared that this entitlement offer is partially underwritten by Canaccord Genuity Limited for up to AU$10 million. As per the terms of this entitlement offer, eligible shareholders will be able to subscribe to 1 fully paid ordinary share for every 12.5 Healthia shares that they hold at 7:00 PM AEST on Monday, 12 September 2022 (Record Date).
The issue price of new shares is AU$1.47 per share. The entitlement offer will issue about 10,265,323 million new shares, equivalent to approximately 8% of Healthia’s total shares on issue as on 7 September 2022.
