Demonstrating its confidence in Pulse Health, Wyllie Group not only participated in the company's recent A$8.1 million capital raising it also agreed to fully underwrite it.
Wyllie Group acquired just over 28 million shares at $0.04 each under the non-renounceable 3 for 4 rights issue.
It was also allocated the rights issue shortfall of 125.9 million shares for a total consideration of just over $5 million.
In total, Wyllie Group invested around $6.2 million of the $8.1 million capital raising alone.
The funds raised will be used to expand Pulse Health's 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.
Importantly, the deal presents an attractive multiple for Pulse Health of 6.5 times EBITDA post $200,000 in synergies, as well as an improved balance sheet.
Pulse Health became profitable last year with a profit of $423,000 for the 2011 financial year. The company has already surpassed that in just the first half of the 2012 financial year, generating $600,000 in profit.
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