Deal profile | Gadens’ ECM team helps clients navigate challenging times

Despite increased levels of investor uncertainty and market volatility, the Gadens equity capital markets team (ECM team) has seen a wave of activity in recent months, with many listed entities undertaking capital raises.

The initial upsurge of activity was driven by businesses seeking to strengthen balance sheets by utilising the additional placement capacity made available by ASX under its temporary relief class waiver introduced (and recently extended) to combat the impact of COVID-19. More recently, we have seen funds being raised to pursue growth opportunities, including both current and future acquisition opportunities.

In recent weeks, the Gadens ECM team has advised on the following transactions:

• Medical imaging company, Mach7 Technologies Limited (ASX: M7T) on its A$34.8 million institutional placement and accelerated non-renounceable entitlement offer (with a fully underwritten retail component) to fund the CA$38.5 million (~A$40.8 million) acquisition of Client Outlook Inc, a Canadian company specialising in enterprise viewing technology.

• Health club owner and operator, Viva Leisure Limited (ASX: VVA) on its fully underwritten A$25 million institutional placement and accelerated non-renounceable entitlement offer.

• Cybersecurity company, Firstwave Cloud Technology Limited (ASX: FCT) on its A$14.9 million institutional placement and accelerated non-renounceable entitlement offer with a fully underwritten retail component.

• Regulatory technology company, Kyckr Limited (ASX: KYK) on its A$8 million institutional placement and A$2 million share purchase plan.

• Health technology company, Medibio Limited (ASX: MEB) on its A$2 million institutional placement and fully underwritten non-renounceable entitlement offer.

• eHealth SaaS company, Respiri Limited (ASX: RSH) on its A$2 million placement to institutional investors and A$3 million share purchase plan.

This uptick in capital markets activity follows on from Gadens advising The Citadel Group Limited (ASX: CGL) on its fully underwritten A$127 million institutional placement and associated £103 million (A$198 million) acquisition of leading UK radiology and maternity software solutions provider, Wellbeing Software Group, which completed in April 2020.

Gadens Partner Michael Kenny explains that: “Despite the difficulties the market has had to absorb during the COVID-19 pandemic, we are still seeing a strong level of activity as companies undertake capital raises to prepare themselves for future growth. Our team has completed a number of raises in recent months with more already in the pipeline.”

Our team: The Gadens equity capital markets team is led by partners Jol Rogers and Michael Kenny.