ASX 200 drops 0.8%, Nearmap (ASX:NEA) sinks

The S&P/ASX 200 Index (ASX: XJO) fell by 0.83% today to 5,859 points after another market selloff in the US on Thursday.

Nearmap Ltd (ASX: NEA)

The Nearmap share price was the worst performer in the ASX 200 today. The aerial imaging business returned to trade after its capital raising trading halt.

Nearmap announced today that it has successfully completed a $72.1 million institutional placement. The placement was priced at $2.77 per share, which was at the top end of the placement bookbuild range of $2.69 to $2.77. This was a 4.2% discount to the closing price of $2.89 on 9 September 2020. However, that’s much higher than the closing price today of $2.47.

The company reminded investors that the proceeds from the placement will be used to accelerate growth opportunities in the company’s core industry verticals, invest in rolling out the company’s fourth generation camera system and build out the operational foundations to support future growth aspirations.

Nearmap CEO and managing director Dr Rob Newman said: “The strong support our company received from both existing shareholders and new investors is extremely encouraging and I wish to thank them for their endorsement of our strategy. With an even stronger balance sheet, we are well positioned to execute on our accelerated growth strategy and will continue to focus on the global opportunity to become the world’s leading provider of subscription-based location intelligence.”

The ASX 200 business also confirmed that non-executive director Mr Ross Norgard also sold 4.2 million shares representing 15.1% of his holding in Nearmap.

Retail shareholders will be able to buy shares from 17 September 2020.

Rio Tinto Limited (ASX: RIO)

The board of Rio Tinto has been engaging with various stakeholders after the publication of its review into cultural heritage management.

Significant stakeholders expressed concern about executive accountability for the identified failings.

Rio Tinto announced today that J-S Jacques will step down from his role as an executive director and CEO. A process to identify his successor is underway. J-S will remain in his role until the appointment of his successor or 31 March 2021, whichever is earlier. Rio Tinto said this will ensure business continuity to maintain the strong performance of the group’s global operations during COVID-19.

J-S Jacques isn’t the only one that will be stepping down. The chief executive of iron ore, Chris Salisbury and the group executive of corporate relations, Simone Niven, will be leaving.

The ASX 200 miner is establishing a new social performance assurance function, reporting to Mark Davies, to strengthen oversight of communities and heritage practices and performance within the operations.

Rio Tinto chair Simon Thompson said: “What happened at Juukan was wrong and we are determined to ensure that the destruction of a heritage site of such exceptional archaeological and cultural significance never occurs again at a Rio Tinto operation. We are also determined to regain the trust of the Puutu Kunti Kurrama and Pinikura people and other traditional owners. We have also listened to our stakeholders’ concerns that a lack of individual accountability undermines the group’s ability to rebuild that trust and to move forward to implement the changes identified in the board review.”

The Rio Tinto share price finished down 0.6%.

Pro Medicus Ltd (ASX: PME)

ASX 200 medical technology business Pro Medicus announced that it has signed a 7-year, $25 million deal with NYU Langone Health. It is also going to collaborate to research and develop the next generation of imaging solutions. 

NYU Langone was ranked in the 10 best hospitals by US news and world report 2020 to 2021.

The tier 1 academic institution which includes the respected NYU Grossman School of Medicine.

Visage technology will be deployed throughout NYU’s imaging departments replacing systems from legacy vendors. The deal spans six hospitals and numerous other locations across the network. The rollout is expected to commence in the second quarter of FY21.

The contract for the ASX 200 healthcare share is based on a transaction-based licensing model.

Pro Medicus CEO Dr Sam Hupert said: “NYU Langone is a very significant addition to our rapidly growing North American footprint. More than any other PACS vendor, we now have seven of the top twenty ranked US hospitals standardising on our technology and are looking to grow that further across additional market segments. We believe the network effect of this and other recent wins positions us well to increase our lead in this highly competitive market.”

 The Pro Medicus share price rose by 1% today.

More reading

• The ASX 200 is still stuck in a rut
• The latest ASX stocks upgraded by brokers to “buy” today
• Leading broker downgrades Nearmap (ASX:NEA) shares
• Afterpay (ASX:APT) share price facing new competitive pressure
• Pro Medicus (ASX:PME) share price higher on major contract win and research agreement

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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