The MedAdvisor Ltd (ASX: MDR) share price will be one to watch later this week when it returns from its trading halt.
Why is Medadvistor in a trading halt?
This afternoon the medication management platform provider requested a trading halt whilst it undertakes a non-underwritten institutional placement and an accelerated non-renounceable entitlement offer to raise $45 million.
MedAdvisor is aiming to raise the funds at 45 cents per new share, which represents a 12.5% premium to its last close price on 30 October.
The company is launching this equity raising after entering into a binding agreement to acquire Adheris Health for up to US$34.5 million (A$49 million). This represents a multiple of ~1.04 x estimated calendar year 2020 revenue of US$26.4 million.
Management notes that this acquisition will make it a leader in tailored opt-out, direct-to-patient medication adherence programs in the USA. It will give it an addressable network of 180 million+ patients, ~25,000 pharmacies (>57% of prescriptions in the USA), and a network of 618,000 prescribers (~60% of total).
It also expects it to accelerate the company’s penetration in the US market by leveraging Adheris’ existing pharmacy integrations. This reduces the need for MedAdvisor to individually integrate with the underlying US pharmacies and Electronic Health Records.
“Transformational”
MedAdvisor’s CEO and Managing Director, Robert Read, believes the acquisition will be transformational for the company.
He said: “Medication non-adherence is a multi-billion-dollar global market with a lack of global players working to solve it. The US represents about 40% of the world’s medicines market and Adheris has the potential to reach 1 in 2 Americans through its opt out patient programs.”
“The opportunity to acquire a strategically aligned scale provider, in the US, with whom we have already integrated our technology and go to market approach, we believe is transformational for MedAdvisor. This acquisition primes MedAdvisor to become a genuine global player with scale in medication adherence, helping millions of patients around the world improve their health outcomes,” he added.
Forget what just happened. We think this stock could be Australia’s next MONSTER IPO…
One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting…
Because ‘Doc’ Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget ‘buy now pay later’, this stock could be the next hot stock on the ASX.
See how you can find out the name of this stock
Returns as of 6th October 2020
More reading
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MedAdvisor. The Motley Fool Australia has recommended MedAdvisor. 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.
The post MedAdvisor Ltd (ASX:MDR) share price halted ahead of transformational $49 million acquisition appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/34N63R0
Leave a Reply