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Healthia (ASX:HLA) completes placement and institutional entitlement offer

Health Care
ASX:HLA
22 September 2021 12:20 (AEST)
Healthia (ASX:HLA) - Managing Director & Group CEO, Wesley Coote

Source: Healthia

Healthia (HLA) has completed a placement and the institutional component of its fully underwritten one-for-4.3 pro rata non-renounceable entitlement offer.

As announced at the start of the week, Healthia is launching a $60 million capital raise to fund the acquisition of the Back in Motion Health Group and its 64 physiotherapy clinics throughout Australia and New Zealand for a cash and share consideration of $88.4 million.

Healthia considers the buy to be a strategic way of positioning it as a leading provider of physiotherapy services in Australia and expanding its presence to the WA and New Zealand markets.

The placement and institutional entitlement offer raised a combined total of about $44.5 million at a price of $1.80 per share.

The offer price represents an 18.2 per cent discount to the last closing price of $2.20 on September 17 and a 9.3 per cent discount to the five-day volume-weighted average price of $1.98.

Broken down, Healthia agreed to issue roughly 12.4 million shares to raise $22.3 million without the need for shareholder approval. The institutional offer raised $22.2 million through the issue of about 12.34 million shares and saw a significant take-up of entitlements by institutional shareholders.

The company expects to raise the remaining $15.5 million through the retail component of its entitlement offer which will be open from September 27 until October 6.

Company shares were down 1.88 per cent to trade at $2.09 at 1:50 pm AEST.

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