Paragon Care (ASX: PGC) is raising $2 million through a placement at $0.27 to sophisticated and professional investors, with the funds to repay bank debt, fund working capital and provide for a dividend at the end of the current financial year.
The placement will comprise the Tranche 1 placement of $1.3 million, with Tranche 2 for $0.7 million subject to shareholder approval. Paragon's shares last traded at $0.37 before the announcement.
Paragon, which is focused on the services to Australia’s health and aged care markets, will also launch a Share Purchase Plan to subscribe up to another A$15,000 in shares - which has the potential to further increase it's cash balance, and allows existing shareholders to benefit from the discount applied to the placement.
The ageing Australian population provides a growing opportunity for Paragon services, with the company a distributor and manufacturer of premium durable medical equipment to the acute and aged care markets.
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