I note that MedAdvisor (ASX - MDR) have successfully raised $8m to fund their acquisition of Healthnotes ($5.5m 60% cash/40%script). The offer was oversubscribed and with no discount. The funds raised provide cash for the acquisition plus working capital. Interested to see that as well as being supported by institutions and sophisticated investors they have attracted investment by pharmacy groups.
The acquisition of Healthnotes gives MDR a greater market share of the pharmacy software and apps that connect patients/pharmacies/GPs which facilitates messaging for ordering medicines, script reminders, Drs appointments for new scripts and many other interactive features. Ironically the software for MedAdvisor's applications are run on the same pharmacy computers that are used for the Corum programs.
Although MedAdvisor are not making any profits yet this capital raising certainly supports the notion that they will be in time.
This post is not a promotion of MDR as I have no holding yet, but merely to point out that maybe Corum have missed an opportunity for an alliance with MDR at a very early stage. They perhaps could have struck a deal to acquire MDR (cash/equity or equity only) and also then acquired Healthnotes in the same fashion as MDR have. I love that MDR have attracted investment from pharmacists. Giving them a piece of the action is a good way of gaining loyalty!
Corum could still possibly continue to watch out for an opportunity to gain a controlling interest in the MedAdvisor/Healthnotes business. I would like to see Corum raise funds for any future acquisitions by offering current and new pharmacy clients an opportunity to participate in a share offer.
COO Price at posting:
7.5¢ Sentiment: Buy Disclosure: Held
