Convertible Note Termination Simplifies InteliCare’s Capital Risks
InteliCare Holdings has raised $2 million through a two-tranche placement to accelerate its AI-driven aged care platform and terminated a convertible note facility to streamline its capital base.
- Two-tranche placement raising $2 million at 1.5 cents per share
- Immediate issue of 121.8 million shares under existing capacity
- 11.5 million shares subject to shareholder approval at upcoming EGM
- Termination of $600,000 convertible note facility to reduce dilution
- Funds to support pilot programs and commercial deployments
Capital Raise to Accelerate Growth
InteliCare Holdings Ltd (ASX, ICR), an Australian technology company specialising in AI-driven solutions for aged care and health sectors, has successfully secured $2 million through a two-tranche placement. The placement was priced at 1.5 cents per share and attracted commitments from both existing and new institutional and sophisticated investors. This capital injection is designed to accelerate the company’s growth trajectory and support ongoing pilot programs.
The first tranche involved the immediate issuance of 121.8 million fully paid ordinary shares under the company’s existing placement capacity, raising approximately $1.827 million. The second tranche, which will issue 11.5 million shares raising around $173,000, is contingent upon shareholder approval at an upcoming extraordinary general meeting (EGM).
Simplifying the Capital Structure
In a strategic move to streamline its financial position, InteliCare has terminated a previously announced $600,000 convertible note facility. This termination, agreed upon with all note subscribers, eliminates a potentially more dilutive funding mechanism in favour of the current equity placement. The company’s interim executive director, Tim Chapman, highlighted that this simplification positions InteliCare well for future growth and reduces complexity in its capital structure.
Supporting Key Pilots and Commercial Expansion
The proceeds from the placement will be directed towards accelerating deployments with key customers, including an exciting pilot with mecwacare and ongoing deployments at Hardi Aged Care. These initiatives are critical to building a robust evidence base demonstrating the value of InteliCare’s proprietary AI platform, which aims to improve care outcomes, enhance staffing productivity, and optimize asset management in aged care settings.
Chapman emphasized the company’s commitment to enhancing its market-leading platform and securing further commercial agreements from its sales pipeline. The capital raise also provides necessary working capital to support these growth activities, reinforcing InteliCare’s position at the forefront of technology-driven aged care solutions.
Looking Ahead
Westar Capital Ltd acted as lead manager for the placement and will receive a 6% capital raising fee along with options subject to shareholder approval. The company’s upcoming EGM will be a pivotal moment, as shareholder endorsement of the second tranche and associated options will unlock the full $2 million funding.
With a strengthened balance sheet and a clear focus on commercial execution, InteliCare is poised to advance its innovative AI platform and expand its footprint in the aged care technology market.
Bottom Line?
InteliCare’s capital raise and streamlined structure set the stage for critical pilot progress and commercial growth in the months ahead.
Questions in the middle?
- Will shareholders approve the second tranche and associated options at the upcoming EGM?
- How will the termination of the convertible note facility impact future dilution and investor sentiment?
- What are the timelines and expected outcomes for the mecwacare and Hardi Aged Care pilot programs?
