MedAdvisor (ASX: MDR) says it expects to pass $55 million in revenue this calendar year and the funds raised will also help drive the business towards cash flow breakeven.
The equity raise was done at 30 cents per share, representing a 7.1% premium to the last traded price of MedAdvisor shares, and a 4.4% discount to the five-day volume-weighted average price.
CEO and Managing Director Robert Read said, “This capital injection puts MedAdvisor in a strong cash position as we continue to execute on significant growth opportunities and fast-tracking strategic digital US initiatives.”
The placement was supported by existing institutional shareholders, Perennial Value Management and Jencay Capital.
MedAdvisor announced it has also executed a non-binding term sheet with San Francisco-based Partners For Growth VI, L.P. (PFG) for a 3-year loan facility of up to US$9 million (A$11.7m):
● The Loan Facility includes a US$5m (A$6.5m) term loan to be funded at closing of the transaction and an up to US$4m (A$5.2m) revolving line of credit.
● The facility will be used to repay the US$5m (A$6.5m) in outstanding convertible notes on issue to Syneos, issued as part of the Adheris Health acquisition and continue the investment in growth following the payment of the CY20 Earn Out.
“This funding structure provides MedAdvisor with the capital to execute on our strategy in a manner that minimises dilution for our existing shareholders and drives us towards cashflow breakeven. Given MedAdvisor’s strong forward bookings and pipeline, the board has a high degree of confidence in our outlook,” Read said.
“We are delighted that the integration of Adheris Health has proceeded smoothly and that the full 2020 earnout has been achieved.”