- Medication management software company Medadvisor (MDR) has secured $5.25 million via a placement and locked in an $11.7 million loan facility
- The placement offered shares at 30 cents each and garnered the support of existing institutional investors
- CEO and Managing Director Robert Read said the cash injection will enable the company to fast-track strategic digital U.S. initiatives
- The loan facility is made up of a $6.5 million term loan — which will be used to repay convertible notes — and a revolving line of credit of up to $5.2 million
- Shares have been trading flat at 28 cents
Medication management software company Medadvisor (MDR) has secured $5.25 million via a placement and locked in an $11.7 million loan facility.
Capital raise
The placement offered shares at 30 cents each — a 4.4 per cent discount to the five-day volume-weighted average price — and garnered the support of existing institutional investors Perennial Value Management and Jencay Capital.
CEO and Managing Director Robert Read said the proceeds from the placemnet will support and accelerate the business’ growth initiatives.
“This capital injection puts MedAdvisor in a strong cash position as we continue to execute on significant growth opportunities and fast-tracking strategic digital U.S. initiatives.”
Loan facility
The three-year loan facility is made up of a $6.5 million term loan and a revolving line of credit of up to $5.2 million.
The $6.5 million from the term loan will be used to repay the outstanding convertible notes on issue to Syneos which were issued as part of the Adheris Health acquisition.
The loan facility will have a 10.25 per cent interest on the draw down, a 1.65 per cent establishment fee and a fee of US$338,000 (around A$438,000) to be paid at maturity.
Shares have been trading flat at 28 cents at 12:24 pm AEST.