Next Investors logo grey

Healthia expands national presence with NSW acquisitions


Published 02-AUG-2019 10:07 A.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Allied healthcare operator Healthia (ASX:HLA) has continued its clinic acquisition spree, this week announcing the addition of 4 hand therapy clinics in Sydney.

Since listing on the ASX in September 2018, Healthia has now acquired 26 new clinics across it’s podiatry and physio businesses with the latest round of clinics forecast to deliver annual earnings of $775,000, having been acquired for a total of $3.5m via a combination of cash and equity.

“The 4 speciality hand therapy clinics, which provide physiotherapy and occupational therapy for the hand and upper limb, complement our existing 9 Extend Hand Therapy clinics in Queensland,” said Tony Ganter, Healthia CEO of Physiotherapy.

“We are pleased that we are able to expand these speciality services across the group.”

These new acquisitions maintain Healthia’s momentum having last month acquired 6 podiatry and 3 physiotherapy clinics, further fueling their national expansion since listing.

Healthia’s acquisitions have been funded by a $37 million cash facility but one factor which has made partnership with Healthia attractive is the company’s unique Clinic Class Share model where partner-operators gain equity in the company’s national operations.

With cash consideration for the 26 clinic acquisitions since listing totalling $13.55 million, the company has flagged further national expansion plans for the Group which also operate DBS Medical Supplies and iOrthotics - one of Australia’s largest orthotics producers.

Canaccord has a price target on HLA of $1.45 (currently $1.08). However, price targets are speculative and investors should seek professional financial advice for further information if considering this stock for their portfolio.

Aussie bookmaker shares surge following major US partnership with Penn National Gaming

In two short months since listing on the ASX, PointsBet Holdings Limited (ASX:PBH) has accelerated its activities in the lucrative US gaming market, this week announcing a strategic partnership with Penn National Gaming (Nasdaq: PENN).

Under the agreement, the Melbourne-based bookmaker has secured market access to West Virginia and Indiana where sports betting has been legalised, as well as Ohio, Indiana and Missouri where licenses are expected to be issued in the future.

“Partnering with Penn provides PointsBet access to five important States and the potential for further State deals,” said PointsBet CEO Sam Swanell.

“We are delighted to partner with such a forward thinking and innovative organisation.

“This agreement evidences the confidence our partners continue to have with PointsBet’s in-house technology, products, brand and team.”

Under the terms of the 20-year partnership, PointsBet will become the digital sports betting partner in the 5 States where the American casino operator can provide market access following last year’s landmark decision in the United States where the Supreme Court overturned a 1992 law which prevented sports betting beyond the States of Nevada and New Jersey.

Penn National Gaming currently operates 41 facilities across 19 jurisdictions with facilities featuring approximately 50,500 gaming machines, 1,300 table games and a loyalty program of more than five million active customers.

“PointsBet has proven that a great product, creative marketing strategy, and best-in-class team can win in a competitive market,” said Jon Kaplowitz, PNG Senior Vice President, Interactive Gaming.

“We are thrilled to be forming a strategic partnership with PointsBet and are confident that they will continue to thrive in the growing sports betting marketplace.”

As consideration for the partnership, PNG has entered into a subscription agreement with PointsBet which will issue shares equivalent to a 5.28% stakes in PointsBet Holdings, as well as 10,372,549 options exercisable at $4.75 per option.

Shares in PBH closed on Wednesday at $2.98 per share but reached highs of $3.53 (+18.5%) on Thursday morning following the pre-market announcement

PointsBet Holdings listed on the ASX on 12 June 2019 at an IPO offer price of $2.00 per share.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.