- BTC health has completed an $8 million private placement to fund its subsidiary’s acquisition of the Hospital Infusion Business.
- As part of the private placement, Sigma Healthcare Ltd invested a cornerstone $2 million.
- Sigma will undertake the hospital distribution of BTC health products following the completion of the acquisition,
- 100 million ordinary shares to be issued under a two-tranche structure at $0.08 per share.
- The acquisition is scheduled to be completed on 31 May 2019.
BTC health Ltd has announced the completion of an $8 million private placement to fund its wholly owned subsidiary BTC Speciality Health Pty Ltd’s acquisition of the Hospital Infusion Business from Admedus Ltd.
100 million ordinary shares will be issued under a two-tranche structure at an issue price of $0.08 per share, which represents a 5.9 per cent discount to BTC health’s last closing price of $0.085 on 10 May 2019.
Tranche 1 is set to raise approximately $2.6 million with ordinary shares issued in accordance with the Company’s available 25 per cent private placement capacity under ASX Listing Rules 7.1 & 7.1A.
Tranche 2 will raise approximately $5.4 million with ordinary shares to be issued subject to BTC health obtaining shareholder approval at an Extraordinary General Meeting (EGM) convened by the company in June 2019.
As part of the private placement, Sigma Healthcare Ltd invested a cornerstone $2 million, resulting in a shareholding of approximately 10.5 per cent after all ordinary shares have been issued.
Following the completion of the acquisition and the transfer of the Hospital Infusion Business from Admedus, Sigma will begin distributing BTC Health products to private and public hospitals using its well established wholesaler distribution network.
BTC health Executive Chairman Richard Treagus said the company was pleased with the positive response to the acquisition from existing shareholders and new investors alike.
“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,” Richard said.
“We are particularly excited about our strategic partnership with Sigma, which will substantially strengthen our market position, giving us ready access to their hospital services, distribution infrastructure and established customer relationships,” he said.
Sigma CEO and Managing Director Mark Hooper shared similar sentiments.
“The strategic investment in BTC health provides a unique opportunity that aligns with our broader hospital and specialty medicines strategy, as well as leveraging our wholesale distribution network and capabilities,” Mark said.
The acquisition is set to be completed on 31 May 2019, and BTC is offering a Share Purchase Plan for eligible existing shareholders, who have the opportunity to subscribe for up to $15,000 or 187,500 fully paid ordinary shares. The issue price will be $0.08 per ordinary share, which is the same price as under the private placement.