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Two new players join the ASX
Coolabah Metals (CBH) and Sierra Rutile Holdings (SRX) have joined the ASX this week.
Coolabah Metals listed today after raising $6 million with 20 cent shares. The company had a slow start, with first trades down more than 20 per cent on that IPO raise price (15.5 cents 3:00 pm AEST).
Coolabah has precious metals projects in the Lachlan Fold Belt of New South Wales and Mount Isa region of Queensland.
Sierra Rutile Holdings is a demerger from Iluka Resources, who’ll be mining mineral sands in southern Sierra Leone.
The company listed on the ASX yesterday. Shares briefly traded at 60 cents on day one, but the value was today hovering around the mid-30 cent mark (37 cents at 4:00 pm AEST).
Capital raisings
MedAdvisor (MDR) is expanding its grip on the pharmaceutical apps space, buying its competition, GuildLink from Guild Group – which comes under the Pharmacy Guild of Australia.
Whilst it’s a scrip deal that’ll see the Guild Group become MedAdvisor’s largest shareholder, MedAdvisor’s since completed a $10 million institutional raise at 14 cents a share and is reaching out to retail investors for another $4.6 million.
The company plans to integrate the platforms and invest in its technology and user experience.
MedAdvisor’s chair, Linda Jenkinson, spoke to The Deal Room’s Sonia Madigan from Wellington in New Zealand.
“The way we see it is that we have built the highest quality technology,” she said.
“The market’s really asking for one integrated platform to enable pharmacies to be as efficient as they can and our platform is at least two times more efficient than any of the other options in the market place.
“We are paying $9.1 million in enterprise value. It’s an all-equity deal so the Guild is receiving stock for that, but in addition to that, the Guild is investing another $4.9 million into MedAdvisor. We are using some of the money that we’re raising to integrate GuildLink with MedAdvisor.”
MedAdvisor has a market cap of $63 million and shares were trading up at 15 cents in early afternoon to close higher at 17 cents.
The retail offer will remain open until August 10.
Meanwhile, Blue Energy (BLU), has secured $20 million in a placement to institutional and sophisticated investors, to fund drilling and production testing at its North Bowen and Surat Basin assets in Queensland.
The placement is priced at 6.2 cents a share. The company has a market cap of more than $114.5 million, but it traded down nearly 10 per cent on the news to 6.8 at market close.
Another Queensland-focussed company, QMines (QML) has announced a raise of between $2 million and $3.8 million to boost exploration at its Mount Chalmers copper project in Queensland.
The company has a market cap just shy of $20 million and shares have been trading around 17.5 cents today.
Overall, there has been a frenzy of capital raising activity so far this week:
Other companies raising include: American West Metals (AW1), Antilles Gold (AAU), Castile Resources (CST), De.mem (DEM), Godolphin Resources (GRL), Maas Group (MGH), Medallion Metals (MM), Memphasys (MEM), New World Resources (NWC), Pure Foods Tasmania (PFT), Siren Gold (SNG), Spenda (SPX), Titanium Sands (TSL), Vital Metals (VML) and Way 2 Vat (W2V).
