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Radius Residential Care Limited (NZX: RAD) Announces Up to $50m Equity Raising to Fund Growth

Thursday 8th July 2021

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Radius Residential Care Limited (Radius Care) today announced its plans to raise up to $50 million (Equity Raise) to fund strategic growth initiatives. Radius Care is purchasing the land and buildings of four strategically important aged care facilities operated (but not owned) by Radius Care. The purchase of these facilities:

• increases Radius Care’s brownfield development pipeline; and

• gives Radius Care ownership of the aged care facilities adjacent to two co-located retirement villages that it owns and operates.

The purchase of these facilities will be funded by a fully underwritten $23 million placement of new shares (with the ability to accept up to an additional $7 million of oversubscriptions at Radius Care’s discretion on a non-underwritten basis) (Placement) and $10 million of Radius Care shares issued to Ohaupo Holdings Limited (the vendor of those facilities) or its nominee/s (Ohaupo Share Issue). Shares issued under the Ohaupo Share Issue will be escrowed for a period of 12 months. Any proceeds of the Placement not used to fund the Ohaupo acquisition (and related transaction costs) will be used to reduce debt.

In addition, Radius Care is also undertaking a non-underwritten retail offer (Retail Offer) of up to $5 million of Radius Care shares with the ability to accept oversubscriptions of up to $5 million of Radius Care shares for debt repayment to create further headroom for potential future strategic growth initiatives.

The Placement price will be set via a bookbuild process today, subject to an underwritten floor price of $0.50 per Radius Care share. The issue of shares under the Placement, the Ohaupo Share Issue and the Retail Offer will all be undertaken at the same price (being the Placement price) and in each case is subject to Radius Care shareholder approval, which will be sought at a special meeting of shareholders to be held at 10:30am Friday, 23 July 2021 (Special Shareholder Meeting).

Please see the links below for details

Radius NZX Announcement

Radius Investor Presentation

Radius Cleansing Notice

Radius Notice of Meeting

Source: Radius Residential Care Limited



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