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Pulse Health Well Supported By Investors, Attracts New Substantial Shareholder

Pulse Health (ASX: PHG) has gained another substantial shareholder with Benger Superannuation Pty Limited as trustee for Benger Superannuation Fund subscribing to a 6.65% stake in the company.

The company is an interesting position having become profitable last year and now growing its business through acquisitions.

Pulse Health recently strengthened its balance sheet with the successful completion of a fully underwritten A$8.1 million capital raising to expand its portfolio with the acquisition of Eden Rehabilitation Hospital.

Eden is an established and profitable 36 bed rehabilitation hospital currently owned and operated by Sundale Garden Village, a not for profit community association based on the Sunshine Coast.

The facility is strategically located in Cooroy, Queensland, a 30 minute drive from the existing Pulse Health facility at Gympie.

Pulse Health has signed a conditional contract to acquire the business and assets, and to lease the facility from Sundale for 10 years with a further 10 year option.

Queensland is a region under serviced for rehabilitation and the acquisition provides the company with reduced risks, time and cost of developing clinical programs, recruiting specialist staff and developing referral patterns.

Importantly, the deal presents an attractive multiple for Pulse of 6.5 times EBITDA post $200,000 in synergies, as well as an improved balance sheet.

Growing cash position

Pulse Health made a profit of $423,000 last financial year. The company has already surpassed that in just the first half of the 2012 financial year, generating $600,000 in profit.

With the acquisition of Eden Rehabilitation Hospital future profits will grow even further as the business becomes earnings positive for Pulse Health.

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