Why the Oceania (ASX:OCA) share price is frozen

The Oceania Healthcare Ltd (ASX: OCA) share price is in a trading halt after the company announced capital raising and acquisition plans.

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A man on a phone call points his finger, indicating a halt in trading on the ASX share market

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The Oceania Healthcare Ltd (ASX: OCA) share price won’t be going anywhere today after the company’s shares were placed in a trading halt. This comes after Oceania unveiled plans for its latest capital raise.

Why is the Oceania share price in a trading halt?

Oceania today announced plans to raise ~NZ$100 million to fund its latest acquisition plans. The company will seek to raise NZ$80 million via a fully underwritten placement and a NZ$20 million non-underwritten retail offer. Oceaniea will have the ability to accept oversubscriptions at its discretion.

The funds will be used in the acquisition of a premium retirement village, Waterford on Hobsonville Point, in Auckland, New Zealand. Oceania is also planning to use the money in its existing leased facility and adjacent development land in Franklin.

The Oceania share price will be one to watch when the company’s shares return to trade early next week.

Oceania said in today’s release that the funds will provide additional financial capacity for its future growth and reduce corporate debt outstanding while other growth opportunities are assessed.

The Kiwi healthcare group’s shares will enter a trading halt today with plans to re-commence trading on Monday 29 March.

Oceania’s placement will be fully underwritten by Jarden Partners Limited and Macquarie Securities (NZ) Limited. The placement is underwritten at a fixed price of NZ$1.30 per share – a 6.5% discount to the last close price of NZ$1.39 per share on 22 March.

The Waterford on Hobsonville Point site comprises 64 independent living villas and 36 independent living apartments. Oceania’s acquisition is expected to settle in April or May 2021 and remains conditional on relevant approvals.

What else has been happening for Oceania?

The Oceania share price climbed higher on Monday after the company announced its new CEO. Former CFO, Brent Sutton, has been appointed the group’s new CEO effective immediately.

The news saw the Kiwi healthcare share edge higher yesterday after former CEO Earl Gasparich was poached by Metlifecare Limited earlier this month.

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