Australian medtech company MedAdvisor (ASX: MDR) has received a major boost in confidence following an oversubscribed capital raise which included an $11m investment from U.S healthcare solutions provider HMS (NASDAQ: HMSY).
The investment from HMS comes alongside a further $6m raised from institutional investors bringing their total funds raised to $17m, all at an Offer Price of $0.05 per share, a premium of 11% on their last closing price of $0.045.
With the cornerstone investment from HMS, the American firm will hold a 13% stake in MedAdvisor and which also sees Jeff Sherman appointed to the MedAdvisor Board of Directors. Sherman is currently the CFO of HMS and brings more than 30 years of healthcare industry experience to the Board.
“We are delighted that MedAdvisor’s strategy to leverage our patient health platforms in the US, Asia & most recently in the UK is endorsed by investors,” said MedAdvisor CEO, Robert Read.
“This increased global reach is attracting high quality investors and to raise this funding at a premium provides strong endorsement.”
“HMS is an innovative healthcare solutions company that is expert in patient behaviour and analytics. HMS is also active in Australia, being the largest private partner of the Federal Government’s Digital Health CRC, which will provide opportunities to validate joint solutions.”
Funds raised from this round of capital raising will be used to accelerate MedAdvisor’s international expansion across the U.S, South East Asia and the United Kingdom for its digital healthcare solutions.
MedAdvisor’s Health Programs are designed to drive quality use of medicines, health literacy and medication adherence amongst patients through digital mediums. More than 1 million Australians are already connected through the platform via Australian pharmacies and a network of thousands of GPs.
Also utilising the technology, HMS saves healthcare organisations billions of dollars annually through industry-leading analytics and engagement solutions where the company has more than 2,500 employees across the United States.
Following news of the cornerstone investment from HMS, shares in MedAdvisor surged to a high of $0.61, a 35.5% rise on the previous day’s close.