Digital medication management company MedAdvisor Ltd (ASX: MDR) last week announced it has raised $17 million by issuing 340 million new shares at an issue price of 5 cents per share. That actually represented an 11% premium to its last pre-cap raising trading price of 4.5 cents per share.
Nasdaq-listed US healthcare operator HMS Holdings Corp (HMSY) is a cornerstone investor in the capital raising by agreeing to tip in $11 million.
"Funds raised will accelerate international expansion through MedAdvisor's synergistic partnering strategies in the US, South East Asia and the UK, as well as driving domestic growth through sales, marketing and technology development taking the business towards cash break even," Medadvisor reported.
As part of the deal MedAdvisor also reports it will become HMS's "preferred partner" for the distribution of digital health software-as-a-service products in the US and Australia.
MedAdvisor claims to have connected more than 1 million patients already via a network of around 55% of all Australian pharmacies.
For the fiscal year ending June 30 2019 it reported a net loss of $8.15 million on sales of $8.24 million and total revenue of $9.2 million.
It recently recruited the ex Redbubble Ltd (ASX: RBL) chief technology officer to take up the role at MedAdvisor.
As at September 2 2019 it had 1.37 billion shares on issue, with another 340 million issued as a result of the capital raising. As a result it looks to have a market value around $85 million based on around 1.71 billion shares on issue.
