This article is from the Australian Property Journal archive
HEALTH club owner Viva Leisure has raised $16 million from institutional investors, which will help fund the group’s expansion in Western Australia.
Approximately 11 million new ordinary shares were issued at $1.45 per share, representing a 7.1% discount to the last closing price of $1.56 on 5 June 2024, and 4.9% discount to the 10-day volume-weighted average price (VWAP) of $1.525.
Proceeds will be used to fund the purchase of eight health clubs in Western Australia as well as working capital.
The acquisitions mark the entry of the Club Lime brand into its sixth state/territory in Australia and will add approximately 20,000 new members and are expected to contribute over $3.9 million in EBITDA per annum moving forward, pre-synergies.
“We are delighted with the strong support shown by our existing and new investors. The success of this capital raise is a testament to the market’s confidence in our growth strategy and future prospects. These strategic acquisitions not only enhance our national footprint but also provide significant opportunities for further growth and value creation,” CEO Harry Konstantinou said.
