Australian medication management platform MedAdvisor expects to this week complete the acquisition of US patient adherence and engagement company Adheris Health following a successful capital raise.
MedAdvisor has successfully completed the institutional component of the accelerated non-renounceable entitlement offer and institutional placement originally announced on 2 November 2020, raising approximately AUD $35 million, exceeding the minimum required to complete the acquisition of Adheris Health.
The acquisition accelerates MedAdvisor’s penetration in the US market by leveraging Adheris’ existing pharmacy integrations reducing the need for MedAdvisor to individually integrate with the underlying US pharmacies and Electronic Health Records.
The retail component of the entitlement offer opened on 13 November 2020. A maximum of approximately $20 million may be raised under the Retail Entitlement Offer any shortfall can be placed in accordance with ASX listing rules.
MedAdvisor is not reliant on any amount to be raised under the Retail Entitlement Offer to complete its acquisition of Adheris Health and any funds raised will be used for ongoing working capital.
MedAdvisor CEO and Managing Director Robert Read said, “This is a transformational deal for MedAdvisor which will bring digital to Adheris’ enormous scale and its ability to reach 1 in 2 Americans on an opt-out basis. The additional capabilities will not only accelerate our international growth but deliver key capabilities for the expansion of our key offerings in Australia and around the world.”
Adheris’ strong sales pipeline of health programs relating to pharmaceuticals and vaccines built this quarter provides confidence for FY21 sales growth.
“Buying a business that we are already deeply and strategically aligned to is a tremendous value creation opportunity – especially as we continue to roll out our joint digital offering in the world’s largest medicines market,” Read said.
Major shareholder HMS and a number MedAdvisor directors have participated in the round. Chair Chris Ridd’s investment is subject to shareholder approval at the company’s AGM on 21 December, 2020.
“The institutional component of the capital raise has seen several of our significant investors expand their positions and enabled us to welcome a number of new institutional investors to the register,” Read said.
Placement and Institutional Entitlement Offer
The Placement and Institutional Entitlement Offer was supported by existing and new institutional shareholders. Approximately $23.5 million (61,936,703 million shares) was raised under the Placement, and $11.5 million (30,168,560 million shares) was raised under the Institutional Entitlement Offer. The shares under the Placement will be issued within MedAdvisor’s Listing Rule 7.1 and 7.1A placement capacity.
Shares issued under the Placement and Institutional Entitlement Offer will be issued at the same price as the Retail Entitlement Offer ($0.38 per share) and are expected to be allotted on 17 November 2020.
Retail Entitlement Offer
Eligible shareholders may participate in the Retail Entitlement Offer at the same price ($0.38 per share) and offer ratio (1 new share for every 2.5 shares held) as the Institutional Entitlement Offer. Eligible shareholders’ entitlements will be determined according to their ownership of shares on the record date for the Retail Entitlement Offer.
Further details in relation to the Retail Entitlement Offer will be provided in the retail offer booklet, to be despatched to eligible shareholders on 17 November 2020. The offer closes at 5.00pm AEDT on 1 December 2020.
Retail shareholders with questions about the Retail Entitlement Offer should call the MedAdvisor Offer Information Line on +61 2 8651 7816 between 9.00am and 4.30pm AEDT, Monday to Friday during the retail offer period (17 November 2020 to 1 December 2020).
Acquisition of Adheris Health
Having raised sufficient funds under the Placement and Institutional Entitlement Offer, MedAdvisor will proceed to complete the acquisition of Adheris Health, which is anticipated to complete on 17 November 2020.
“Adheris has strong, long term relationships with many of the world’s major pharmaceutical companies – working with them through a suite of products which are powered by data and analytics to help engage patients and health care providers,” Read said.
“We’re very excited to combine the exemplary Adheris team with the MedAdvisor family. Their knowhow and market knowledge will help accelerate the development of medication adherence solutions for all our customers.”