Australia: Capitol Health raises A$29.8m in placement

Justin Walters, managing director, Capitol Health

Medical diagnostic imaging services provider Capitol Health has raised A$29.8m (US$18.9m) in what it has called a “strongly supported” placement to institutional investors.

Proceeds from the offer will be used to strengthen balance sheet flexibility, support the business during the current macroeconomic uncertainty, increase liquidity and reduce net debt.

“This capital raise… places CAJ in a position of strength and enables the company to patiently pursue its organic growth and acquisitive strategy,” said managing director Justin Walter.

The company added that the Covid-19 environment “provides a unique opportunity to capitalise on current identified opportunities as well as additional initiatives in line with the company’s three-year strategic plan”.

It sold 186.5 million shares at A$0.16 per share.

Shaw and Partners was lead manager.