Volpara Health Technologies Ltd. agreed to acquire U.S.-based medical software company MRS Systems Inc. for US$14.6 million.
MRS Systems provides patient tracking, communication and a radiology reporting platform for applications including breast and lung imaging. New Zealand-based Volpara — which produces artificial intelligence imaging for the early detection of breast cancer — says the deal will expand its presence in the U.S. and enhance its AI capability.
"The integration of MRS' solution instantly increases the number of US clinics to which Volpara has access from about 400 to over 2,000," the company said in a news release.
The acquisition is expected to complete around the middle of June.
Volpara also launched a A$55 million equity capital raising, including a A$45 million institutional placement and a A$10 million entitlement offer, to fund the deal and drive organic growth.
The placement will be offered to institutional shareholders at A$1.50 per new share, while the 1-for-27 pro rata accelerated non-renounceable entitlement offer will be available to eligible Volpara shareholders — at record date 7 p.m. Sydney time on June 5 — at the same price.
The capital raising is lead managed and fully underwritten by Bell Potter Securities Ltd. Morgans Corporate Ltd. has also been appointed co-lead manager.
Eligible institutional shareholders of the company were also invited to participate in the accelerated institutional component of the entitlement offer.
An institutional shortfall bookbuild will also be conducted on June 4 and will offer new shares that would have been issued in respect of institutional entitlements not taken up by eligible institutional shareholders by the close of the institutional entitlement offer and the new shares that would have been issued to ineligible institutional shareholders.
Settlement of the new shares issued under the institutional placement, institutional entitlement offer and institutional shortfall bookbuild is expected on June 12, while allotment of the new shares is anticipated to occur on June 13.
Volpara's shares have been placed in a trading halt until the placement, institutional entitlement offer and institutional shortfall bookbuild conclude.
Further, eligible retail shareholders — those with a registered address in Australia or New Zealand by 7 p.m. Sydney Time on June 5 and who were not invited to participate in the institutional entitlement offer — can participate in a retail component of the entitlement offer, which will open on June 11 and close on June 26.
Eligible retail shareholders will also be offered the opportunity to subscribe for a certain number of additional new shares, but only to the extent that there is a shortfall under the entitlement offer and at the board's discretion. Any leftover shares not taken up by the retail shareholders will be subscribed for by Bell Potter.