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Why the Alcidion share price is surging higher on Tuesday

James Mickleboro
Health technology shares

There certainly has been a low of money flowing into the share market on Tuesday.

As well as Westpac Banking Corp (ASX: WBC) and MNF Group Ltd (ASX: MNF), healthcare technology company Alcidion Group Ltd (ASX: ALC) announced the completion of a capital raising this morning.

But unlike the others, the response from investors has been positive. The Alcidion share price is pushing 5% higher at the time of writing.

What did Alcidion announce?

This morning Alcidion announced the successful completion of an institutional placement. The company raised $16.2 million through the placement of 90 million fully paid shares at 18 cents per share.

According to the release, the placement was strongly supported by new and existing institutional investors. It brought several leading institutions onto its share register as cornerstone investors.

These funds will be used to accelerate its growth strategy. This will be through an investment in sales, marketing and clinical support resources underpinning market adoption in key markets.

In addition to this, the funds will also be invested to further strengthen the Miya Precision platform. This includes bolstering Alcidion’s ability to execute and deploy the platform.

Management also notes that it leaves the company with a very strong balance sheet. This provides it with the opportunity to expand into additional international markets should an opportunity arise.

Managing Director, Kate Quirke, said: “Alcidion is well-placed to scale up and pursue a significant global market opportunity. The adoption of technology in healthcare is accelerating, driven by access to digital patient data, increasing demands on healthcare and a shifting regulatory environment.”

“The funds raised strengthen our balance sheet and will ensure the Company can capitalise on the growth opportunity ahead, both via organic prospects as well as in new markets. Importantly, the funds will also be used to invest in the business to ensure our products continue to be at the forefront of innovation, continuing to address the evolving needs of healthcare,” she added.

The post Why the Alcidion share price is surging higher on Tuesday appeared first on Motley Fool Australia.

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James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd and MNF Group Limited. The Motley Fool Australia has recommended Alcidion Group Ltd and MNF Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019