Impact placing raises GBP32.6m
Impact Healthcare REIT has successfully raised gross proceeds of GBP32.6 million from a placing of 32,034,471 shares at a price of 101.75 pence per Ordinary Share, which closed on 7 November.
The Placing was significantly oversubscribed and applications have been scaled back in accordance with the terms set out in the launch announcement dated 16 October 2017.
The net proceeds of the Placing are expected to be used to acquire the Target Portfolios (as defined below), other potential acquisition opportunities and/or invest in value enhancing opportunities within the Company’s existing portfolio. The Company has agreed exclusivity on three transactions (together, the "Target Portfolios") with an aggregate value of approximately GBP45 million, which, if acquired, would add in excess of 680 beds to the existing healthcare portfolio, add three new tenants with extensive experience in operating care homes and would further diversify the Company's portfolio geographically across the UK, whilst also presenting a number of value enhancing opportunities which can be delivered over time. It is expected that the net initial yield and average lease term of the Target Portfolios would be in line with the Company's Seed Portfolio. The Company's Investment Adviser is pursuing other potential acquisition opportunities, although all possible acquisitions remain subject to due diligence.
Application has been made for the admission of 32,034,471 Ordinary Shares to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange (Admission). Admission is expected to occur at 8.00am on 13 November 2017 and the Ordinary Shares will trade under the ticker IHR (ISIN: GB00BYXVMJ03).
Following the Placing, the Company's issued share capital will comprise 192,206,831 Ordinary Shares and this is the total number of Ordinary Shares with voting rights in the Company. This figure (192,206,831) should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Rupert Barclay, non-executive Chairman of Impact Healthcare REIT plc, says: “This additional capital raise enables the Company to move to its next stage of growth, further diversify the Company’s tenant base and geographic exposure and to invest in value enhancing opportunities within the Company’s existing portfolio. The Company is focusing on deploying the proceeds of this fundraise into this pipeline of potential investment opportunities in the near term. We are delighted by the support from both new and existing investors to this successful capital raise following our IPO earlier this year.”