- Orcoda and fund manager Avestix have partnered for Orcoda’s aged care transport service
- Avestix will buy the company’s vehicle licence businesses through a new equity fund
- Each of these licences is valued at roughly $100,000 each
- The vehicles will give safe transport to people in need from places like medical centres, retirement villages, and more
- Orcoda’s shares are up 11.1 per cent, with shares trading for 25 cents each
Orcoda has signed a contract with fund manager Avestix Capital to buy Orcoda’s vehicle licence businesses through a newly established equity fund.
Each of these vehicle licences is valued at approximately $100,000.
Orcoda is an Australian logistics solution provider operating in the resources and infrastructure, transport, logistics, and health care sectors.
Its vehicle rental business enables licensees to buy single or multiple vehicle licences. The vehicles are then rented back to Orcoda, who uses them for “Orcoda Connect”.
Orcoda Connect is an integrated transport service for seniors, veterans, and people with disabilities.
Vehicles operate in hubs including medical practices, RSL clubs and retirement villages, Aged Care Villages, and Home Care providers.
New hubs are expected to be established across Australia as the business expands.
Orcoda Managing Director Geoffrey Jamieson sees Avestix as an ideal fund manager for its vehicle licence business as the fund has a known income stream.
“Orcoda Connect provides value for a money transport solution to those that need it most,” Geoffrey said.
He said the service is a lower cost solution compared to taxis and Uber and provides walk-in walk-out assistance to and from the vehicle for people who need it.
“Orcoda Connect is one of the best business opportunities currently available in the marketplace because of the known rental income stream in a marketplace which we expect to double in size over the next 10 years,” Avestix CEO Susan Lindeque said.
Avestix’s Head of Finance Gerry Brady also had strong words to say about Orcoda when, following due diligence, he concluded Orcoda’s financial model is one of the best propositions he and the company have seen.
Orcoda’s shares are up 11.1 per cent, with shares trading for 25 cents each at 11:49 am AEDT.