Placing and Open Offer to raise up to £18.0 million

Placing and Open Offer to raise up to £18.0 million

Notice of General Meeting 

Totally plc (AIM: TLY), the provider of a range of out-of-hospital services to the healthcare sector in the UK, is pleased to announce a Placing and Open Offer to raise up to approximately £18.0 million (before expenses) at an issue price of 55 pence per New Ordinary Share. The Placing, which was oversubscribed, has received strong support from both new and existing institutional investors. Net proceeds of the transaction will be used to drive the Company’s ‘buy and build’ strategy, focused on becoming a leading out-of-hospital healthcare provider in the UK, in a sector worth approximately £20 billion per annum with spending on community healthcare set to increase rapidly*.

Highlights

  • Placing and Open Offer to raise up to £18.0 million to capitalise on potential acquisition opportunities within the UK out-of-hospital healthcare market
  • Placing of 30,909,091 New Ordinary Shares to raise £17 million
  • Open Offer of up to 1,819,462 New Ordinary Shares to raise up to approximately £1 million
  • Qualifying Shareholders may subscribe on the basis of one Offer Share for every 11 Existing Ordinary Shares
  • Qualifying Shareholders may also make applications in excess of their pro rata initial entitlement
  • The Issue Price of 55 pence per New Ordinary Share represents a five per cent. discount to the mid-market price of 58 pence per Existing Ordinary Share on 24 February 2017 (being the latest practicable business day prior to the date of this announcement)
  • In addition to funding future acquisitions, the funds raised will also be used to partially satisfy future deferred consideration payments payable in 2017, to provide further funding in relation to the Group’s direct-to-consumer health coaching services, and to provide general working capital
  • Circular to be posted to Shareholders today, a copy of which will be available on the Company’s website www.totallyplc.com

*Source: Centre for Health and the Public Interest: The contracting NHS – can the NHS handle the outsourcing of clinical services? (2015).

Wendy Lawrence, CEO of Totally, said, “We have received an exceptional response to our £18 million fundraising, which I believe emphasises the strong appetite and understanding that the investment community has for our ability to create value through identifying attractive acquisition opportunities and acting as a consolidator in the current fragmented UK healthcare industry.  

“Our vision is to build Totally into a leading out of hospital healthcare services provider to help address some of the increasing challenges the UK faces in terms of healthcare. We believe the market opportunity is huge as the NHS continues to move non-acute health care components out of hospitals and into the community.  We believe we are ideally positioned to capture much of this market and capitalise on the £20 billion per annum opportunity we believe that the industry offers.  

“Our ‘buy and build’ strategy is already underway having completed three value accretive acquisitions in 2016 worth a total consideration of up to £15.1 million. Since acquisition, they have secured multiple revenue generating contracts and represent only the beginning of Totally’s transformation as we look to acquire larger businesses in the field.

“We have identified a strong pipeline of acquisitions in the UK outsourced healthcare sector and we look forward to updating shareholders on our progress as we build Totally into a leading out-of-hospital healthcare provider in the UK.”

See the full release here: 27.02.2017_TotallyPlc_Firm Placing and Open Offer

February 27, 2017 In: News Comments (None)