BTC health Limited (ASX: BTC) is an ASX listed Pooled Development Fund, registered under the Pooled Development Funds Act 1992. The investments are primarily directed towards the businesses that acquire, develop and commercialize innovative products in the healthcare sector, particularly biotechnology sector with a focus on post-genomics, stem cell biology, convergence, silicon biology, and nanomedicine. The fund invests in both listed and unlisted companies in Australia.
On 15th May 2019, BTC health announced the completion of an $ 8 million private placement to fund the acquisition, by its wholly owned subsidiary BTC Speciality Health Pty Ltd of the Hospital Infusion Business from Admedus Limited (ASX: AHZ). The heavily subscribed placement received a strong support from new and existing institutional, sophisticated as well as professional investors.
Around 100 million ordinary shares will be issued under a two-tranche structure at an issue price of $ 0.08 per share, representing a 5.9% discount to BTC health’s last closing price of $0.085 on 10th May 2019. Accordingly, Tranche 1 will raise ~ $ 2.6 million with shares issued in accordance with the Company’s available 25% private placement capacity under ASX Listing Rules 7.1 (19,544,479 shares) & 7.1A (up to 13,029,653 shares). Subsequently, Tranche 2 will raise around $ 5.4 million with shares to be issued subject to BTC health obtaining shareholder approval at an Extraordinary General Meeting (EGM) convened by the Company on or about 21st June 2019. The details of the same will be released shortly.
In addition to it, BTC health was also provided with a short-term funding facility of $ 4 million from its largest shareholder to complete the acquisition of the Hospital Infusion Business. As full consideration for this funding facility, BTC health has agreed, subject to shareholder approval, to grant around 5.0 million options to this shareholder at an exercise price of $ 0.10 (3 years expiry period from the issue date).
Moreover, the much-publicised placement also includes a cornerstone investment of $2 million by Sigma Healthcare Limited (ASX: SIG), that is now a substantial shareholder (10.5%). As the Hospital Infusion Business from Admedus is entirely transferred and the acquisition comes to close, Sigma will undertake the distribution of BTC health products to public and private hospitals using its well-established wholesaler distribution network.
BTC health Executive Chairman, Richard Treagus commented on the acquisition and quoted, “This is a transformative acquisition for BTC health and provides us with a strong platform on which we can build. Our immediate priorities are to pursue incremental growth in Australia and New Zealand, as well as introduce new products from our BTC health pipeline.”
A quick flick through Admedus’ Hospital Infusion Business is as follows:
Also, on 15 May 2019, BTC’s Director Mr. Peter Jones purchased an additional ~ 40,000 ordinary shares of the company (Indirect Interest) for a value consideration of $4,200.
With around 130.3 million outstanding shares, the BTC stock closed the market trading session at a price of $0.115, shooting up 35.294% by $0.030 with ~ 50k shares traded.
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