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Paragon Care raises funds to repay debt, proposes FY14 dividend payment

Published: 15:00 21 May 2013 AEST

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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.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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