Company news: Paragon Care and Moreton Resources
Paragon Care announced it has conducted a strategic equity placement to Hong-King-listed China Pioneer Pharma Holdings, one of the largest importers and distributors of pharmaceuticals and medical devices into China. The parties advised they intend to leverage off each other (not in these words), for instance, sales of products Pioneer currently has in its stable into Australia, and Paragon selling products which it owns or has distribution rights to into China.
50.4 million shares will be issued (under the 15% shareholder approval cap) at a price of $0.91, a 17.4% premium to Paragon’s share price before the announcement and the concurrent results release (see below). Proceeds will be used to fund acquisitions.
On Monday Moreton Resources announced it is going to formally review its company strategy. This comes as the potential in a number of its undeveloped assets becomes clearer and larger, than was foreseen in 2014 when the previous strategy was developed. A number of informal approaches have recently been made in relation to some of its assets, including potential transactions. A legal advisory firm will be appointed to assist with this process.
Additionally, today Moreton released two announcements. The first was its financial report for FY-18, which included the company’s first underlying profit: of $11m. A summary of the result will be provided in next week’s edition of IM. The second announcement was to raise $2.2m to fund a strategic review, advancement of the South Burnett Coal Project, continuation of the Granite Belt Project and general corporate expenses. We will participate in the rights offer on your behalf.