Extendicare Completes $200 Million Private Placement to Fund Strategic Acquisition

Extendicare ( (TSE:EXE) ) has issued an announcement.

Extendicare has completed a $200 million private placement of common shares, issuing 10,640,000 shares at $18.80 each. The proceeds, approximately $192 million after fees, will be used to partially fund the acquisition of CBI Home Health by its subsidiary, ParaMed Inc. This acquisition is part of Extendicare’s strategy to expand its home health care services, positioning the company for growth in the Canadian senior care market.

The most recent analyst rating on (TSE:EXE) stock is a Buy with a C$17.50 price target. To see the full list of analyst forecasts on Extendicare stock, see the TSE:EXE Stock Forecast page.

Spark’s Take on TSE:EXE Stock

According to Spark, TipRanks’ AI Analyst, TSE:EXE is a Outperform.

Extendicare’s strong earnings call performance and positive technical indicators are the most significant factors driving the score. Financial performance is solid, though high leverage is a concern. Valuation is reasonable, and the dividend yield is attractive.

To see Spark’s full report on TSE:EXE stock, click here.

More about Extendicare

Extendicare is a leading provider of care and services for seniors across Canada, operating under the Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network brands. The company is committed to delivering quality care to meet the needs of a growing seniors’ population. Extendicare operates a network of 99 long-term care homes, delivers approximately 13.5 million hours of home health care services annually, and provides group purchasing services to third parties representing approximately 152,100 beds across Canada. It employs approximately 28,000 team members dedicated to providing high-quality care and services.

Average Trading Volume: 214,692

Technical Sentiment Signal: Buy

Current Market Cap: C$1.72B

For a thorough assessment of EXE stock, go to TipRanks’ Stock Analysis page.