Medical software group MedAdvisor (ASX: MDR) has come to the diagnosis that a discount may work better for its recently launched capital raise to acquire US-based Adheris Health.
Earlier this week the Melbourne-based group launched a $45 million capital raising to obtain funds for the bid.
In a surprise move, the MedAdvisor offered shares at a 12.5 per cent premium.
However, the company decided a discount was just what the doctor ordered, and in a statement to the ASX today said it would now offer shares at 38 cents, a 5 per cent drop on its last close of 40 cents.
"The feedback this week on MedAdvisor's acquisition of Adheris Health from investors has been overwhelmingly supportive based on the strategic alignment to the MedAdvisor business and the scale opportunity that it offers the company in the US market, which represents approximately 40 per cent of the entire global medications market," the company said.
"Whilst there was strong support at a price premium on MedAdvisor's last close to 45 cents, including the company's largest shareholder HMS, it became clear through the engagement process this week that there was stronger support at a 5 per cent discount to the company's last close of 40 cents."
MedAdvisor has entered into a binding agreement to acquire the business from Syneos Health for US$34.5 million, in a move that would make it a leader in tailored opt-out, direct-to-patient medication adherence programs in the US.
The deal could give the company access to an addressable network of more than 180 million and 25,000 pharmacies in the US that represent 57 per cent of the country's prescriptions.
MedAdvisor plans on the acquisition being completed on 16 November.
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