HIP scores new investment
May 6, 2010
THE parent company of the
Health Information Pharmacy
group, Health Corporation Limited,
has announced a heavily
discounted capital raising which will
see it raise $52,050 in working
capital by issuing about 7 million
shares at 0.75 cents each.
A further $199,750 will be raised
via a non-renounceable rights issue
of one new share for two existing
shares at the same 0.75c price, and
the company said it had received a
“firm commitment (subject to
conditions) for the rights issue to be
fully underwritten.”
Health Corporation said the funds
raised would be prioritisedd for the
continued development of the
Chemconsult pharmacy medication
consulting business, evaluation of
new business opportunities and for
general working capital.
The company said the deal on
funding arrangements had been
reached with a “new strategic
investor group” and would also see
two of the existing directors replaced by nominees of the
investment group.
Health Corporation said it was
continuing active cost-cutting
measures to improve its trading
conditions, and had reached six
month standstill undertakings from
three major financiers to reduce its
interest bill.
A further financing agreement
has been entered into with director
Ken Lee under which he will
provide funding to some of the
firm’s subsidiaries for a period of six
months, the company said.
A statement to the Australian
Stock Exchange said that the future
strategic direction of the company
would focus on the Chemconsult
system, and all operations would be
subject to review by the new board.
“Furthermore, with the help of its
new shareholders, the company will
actively review other complementary
opportunities to create shareholder
value,” the company said, thanking
investors for their support “through
this difficult time”.
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