Melbourne based Pulse Health (ASX: PHG) has secured commitments for a $3 million placement from institutional and sophisticated investors.
The placement price struck was at $0.06 per share.
Pulse will offer shareholders an opportunity to subscribe for additional shares on the same terms as the placement via a capped and partly underwritten Share Purchase Plan (SPP). This would raise an additional $2 million.
Funds raised by Pulse will provide further capital for investment into its hospitals, additional working capital and a reduction of debt.
In further good news for investors, Pulse has today reached agreement with its principal bankers, subject to completion of this capital raising, for an extension of its current bank facilities to 31 December 2010.
Incoming chief executive officer Dr Ian Kadish has brought forward his start date with Pulse to 1 November 2009.
In a statement, the company said the agreement reached with its bankers provided Pulse with a secure platform from which to implement Pulse’s business strategy.
The issue of shares is subject to Resolution 7, in the Notice of Annual General Meeting, being approved at the Annual General Meeting on 26 November 2009.
The Placement was lead managed by State Equity Group and has seen the introduction of a number of new shareholders to Pulse’s register.