Why the Oceania (ASX:OCA) share price is frozen

The Oceania Healthcare Ltd (ASX: OCA) share price is in a trading halt after the company announced capital raising and acquisition plans.
The post Why the Oceania (ASX:OCA) share price is frozen appeared first on The Motley Fool Australia. –

A man on a phone call points his finger, indicating a halt in trading on the ASX share market

The Oceania Healthcare Ltd (ASX: OCA) share price won’t be going anywhere today after the company’s shares were placed in a trading halt. This comes after Oceania unveiled plans for its latest capital raise.

Why is the Oceania share price in a trading halt?

Oceania today announced plans to raise ~NZ$100 million to fund its latest acquisition plans. The company will seek to raise NZ$80 million via a fully underwritten placement and a NZ$20 million non-underwritten retail offer. Oceaniea will have the ability to accept oversubscriptions at its discretion.

The funds will be used in the acquisition of a premium retirement village, Waterford on Hobsonville Point, in Auckland, New Zealand. Oceania is also planning to use the money in its existing leased facility and adjacent development land in Franklin.

The Oceania share price will be one to watch when the company’s shares return to trade early next week.

Oceania said in today’s release that the funds will provide additional financial capacity for its future growth and reduce corporate debt outstanding while other growth opportunities are assessed.

The Kiwi healthcare group’s shares will enter a trading halt today with plans to re-commence trading on Monday 29 March.

Oceania’s placement will be fully underwritten by Jarden Partners Limited and Macquarie Securities (NZ) Limited. The placement is underwritten at a fixed price of NZ$1.30 per share – a 6.5% discount to the last close price of NZ$1.39 per share on 22 March.

The Waterford on Hobsonville Point site comprises 64 independent living villas and 36 independent living apartments. Oceania’s acquisition is expected to settle in April or May 2021 and remains conditional on relevant approvals.

What else has been happening for Oceania?

The Oceania share price climbed higher on Monday after the company announced its new CEO. Former CFO, Brent Sutton, has been appointed the group’s new CEO effective immediately.

The news saw the Kiwi healthcare share edge higher yesterday after former CEO Earl Gasparich was poached by Metlifecare Limited earlier this month.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Oceania (ASX:OCA) share price is frozen appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!