MedAdvisor backflips and offers discount on share offer

MedAdvisor backflips and offers discount on share offer

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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

 

 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Incitec Pivot to split explosives, fertilisers businesses after record profits

Incitec Pivot to split explosives, fertilisers businesses after record profits

Following a record performance for the first half, Incitec Pivot (A...

John McGrath calls for calm as real estate company forecasts rise in earnings for FY22

John McGrath calls for calm as real estate company forecasts rise in earnings for FY22

Despite recent trading conditions proving disruptive for the reside...

Board exodus gathers pace at The Star after O’Neill resigns as chairman

Board exodus gathers pace at The Star after O’Neill resigns as chairman

The Star Entertainment Group (ASX: SGR) is now on the hunt for a ne...

Blackstone waits on gaming authorities as Crown shareholders approve $8.9b buyout

Blackstone waits on gaming authorities as Crown shareholders approve $8.9b buyout

Shareholders of Crown Resorts (ASX: CWN) have voted in favour of th...