Radius Residential Care Limited (NZX: RAD) Announces Up to $50m Equity Raising to Fund Growth

Radius Residential Care Limited (Radius Care) today announced its plans to raise up to $50 million (Equity Raise) to fund strategic growth initiatives. Radius Care is purchasing the land and buildings of four strategically important aged care facilities operated (but not owned) by Radius Care. The purchase of these facilities:

• increases Radius Care’s brownfield development pipeline; and

• gives Radius Care ownership of the aged care facilities adjacent to two co-located retirement villages that it owns and operates.

The purchase of these facilities will be funded by a fully underwritten $23 million placement of new shares (with the ability to accept up to an additional $7 million of oversubscriptions at Radius Care’s discretion on a non-underwritten basis) (Placement) and $10 million of Radius Care shares issued to Ohaupo Holdings Limited (the vendor of those facilities) or its nominee/s (Ohaupo Share Issue). Shares issued under the Ohaupo Share Issue will be escrowed for a period of 12 months. Any proceeds of the Placement not used to fund the Ohaupo acquisition (and related transaction costs) will be used to reduce debt.

In addition, Radius Care is also undertaking a non-underwritten retail offer (Retail Offer) of up to $5 million of Radius Care shares with the ability to accept oversubscriptions of up to $5 million of Radius Care shares for debt repayment to create further headroom for potential future strategic growth initiatives.

The Placement price will be set via a bookbuild process today, subject to an underwritten floor price of $0.50 per Radius Care share. The issue of shares under the Placement, the Ohaupo Share Issue and the Retail Offer will all be undertaken at the same price (being the Placement price) and in each case is subject to Radius Care shareholder approval, which will be sought at a special meeting of shareholders to be held at 10:30am Friday, 23 July 2021 (Special Shareholder Meeting).

Please see the links below for details

Radius NZX Announcement

Radius Investor Presentation

Radius Cleansing Notice

Radius Notice of Meeting

Source: Radius Residential Care Limited

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

GEN - Completion of Purchase of Premium Funding Business
Fletcher Building Announces Executive Appointment
WCO - Director independence determination
AIA - welcomes Ngahuia Leighton as 'Future Director'
Mercury announces Executive team changes
Fonterra launches Retail Bond Offer
October 29th Morning Report
BIF adds Zincovery to its investment portfolio
General Capital Resignation of Director
General Capital subsidiary General Finance update