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Pharmacybrands completes $8m share placement


Monday 25th July 2011

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Pharmacybrands has completed the placement of about 8.9 million shares to each of its two largest shareholders, raising $8 million as part of a capital raising to pay for acquisitions.

Up to a further $3.5m is to be raised from a share purchase plan under which shareholders can buy up to a maximum of 10,000 shares each. The price of shares under both the placement and the plan is 45c.

Pharmacybrands bought Radius Pharmacy, which has an interest in 34 pharmacy businesses, Radius Medical, which has an interest in six medical centre practices, and back office support services provider Radius Medical Solutions.

The acquisitions were partly funded by about $26m of new borrowings from ANZ National Bank.

The placement increased the number of shares in Pharmacybrands by about 15 percent, leaving the two largest shareholders -- Cape Healthcare and LPL Trustee -- with 30.4 percent of the company each.

Pharmacybrands' acquisition of Radius Pharmacy cost $17.1m in cash and the assumption of $18m of debt, while $3.2m in total was paid for the other two companies.

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