Diversified digital health platform business Vitura Health (ASX: VIT) has sealed $5.1 million in funding through a placement with AFO Investments – an entity associated with high-net-worth businessman Professor Khalil (Charlie) Shahin.
The cash injection will fund the group’s new acquisition of leading Australian medicinal cannabis clinic business Candor Medical, and support future growth.
In turn, AFO has now become one of Vitura’s major shareholders with 11.4 per cent of the company’s total issued shares.
Proven business leader
Professor Shahin is best known as the managing director of one of Australia’s largest privately owned companies, Peregrine Corporation. It employs more than 7,000 staff and generates some $2.7 billion in annual turnover.
Vitura Health chair, Robert Iervasi, commented:
“Vitura is very pleased to be welcoming an experienced and proven business leader like Charlie Shahin as a substantial shareholder in the Company…
Charlie’s investment is an important validation of the potential of Vitura and our Strategy Reset, and the importance of providing patients with options in how they access healthcare in Australia.”
Benefits to financial performance
The deal with Candor – also announced today – expands Vitura’s specialty healthcare division and is expected to deliver a material boost to revenue and operating earnings (EBITDA) in the 2025 financial year (FY25) and beyond.
The acquisition is also anticipated to generate a significant lift in earnings per share following the placement of shares to AFO.
Vitura is now putting $4 million towards an initial cash payment for Candor, with the remaining funds earmarked for future expansion.
Candor has about 15,000 active patients who have consulted with its experienced clinical team consisting of 26 doctors and nurses. The group recorded more than $1 million in EBITDA in FY24 and improved these numbers materially in just the first half of FY25 where EBITDA also surpassed $1 million.
The purchase price for the acquisition totals $5.9 million. It consists of the initial cash payment of $4 million and a deferred payment of $1.9 million which will be settled in instalments.
Conclusion of the deal is subject to certain standard conditions including regulatory and third-party approvals.
Vitura Health chief executive officer, Geoff Cockeril, said:
“We are very excited by the opportunities unlocked by this acquisition which we see as a great opportunity to bring together two leaders in the field, both of whom have a deep alignment on the commitment to providing patients with personalised care and which reinforces our goal to make specialty healthcare product and service verticals more accessible to millions of patients across Australia.”
Boost in consultation numbers
The acquisition of Candor propels Vitura into one of Australia’s largest medicinal cannabis clinic providers by expanding its consolidated consultation numbers to more than 100,000 each year. Separately, the company’s general clinic business Doctors on Demand conducts more than 300,000 consultations annually.
Vitura’s strategy is focused on building and facilitating a centralised healthcare experience for its patients.
Its portfolio of businesses will now collectively form the group’s ‘Specialty Clinics’ division to deliver a new dedicated telehealth experience for patients led by an expert clinical team. This offering will cater to new and existing Doctors on Demand patients, as well as an ongoing number of new patients onboarded by Candor each month.
The acquisition of Candor is expected to be concluded by the 18th of February.