Oncoclínicas&Co Greenlights R$ 1.5 Billion Capital Increase

Oncoclínicas&Co, a leading oncology company in Latin America, has recently greenlit a significant capital increase of R$ 1.5 billion to bolster its financial standing and propel its expansion plans. This decision was finalized during a pivotal Board of Directors meeting on May 22, 2024. The approved capital increase involves the issuance of 115.4 million new ordinary shares without a specified value, in alignment with the company's Articles of Association.

The primary objective behind this capital infusion is to strengthen Oncoclínicas&Co's capital structure, reduce debt levels, and enhance liquidity to facilitate improved access to advanced oncology treatments for cancer patients. Noteworthy investors from Quíron and Tessália Multi-Strategy Equity Investment Funds, alongside the company's CEO Bruno Lemos Ferrari, have pledged to subscribe to the new shares, amounting to a total of R$ 1.5 billion.

Each new share is priced at R$ 13.00, marking an 89% premium over the current market value. The raised funds will be allocated towards debt reduction, bolstering cash reserves, supporting growth endeavors, organic expansion, and general corporate needs.

Goldman Sachs' investment vehicles, Josephina Multi-Strategy Equity Investment Fund and Josephina II Multi-Strategy Equity Investment Fund, have transferred their preferential rights to Quíron and Tessália investors as part of this capital increase, showcasing confidence in Oncoclínicas&Co's operational model and dedication to top-tier patient care.

The President of Oncoclínicas&Co underscored the significance of this capital increase in seizing forthcoming growth prospects while upholding a steadfast commitment to patient well-being. The company's unwavering dedication to transparency and corporate governance is evident through its proactive communication with shareholders and the market throughout this process.

With a successful track record of over 600,000 procedures conducted last year and an expanded service capacity, Oncoclínicas&Co is strategically positioned to meet the escalating demand for cancer treatment. As cancer rates are projected to surge in the upcoming years, particularly due to an aging population, the company's strategic initiatives are geared towards addressing this mounting healthcare challenge.

Oncoclínicas&Co's recent approval of a R$ 1.5 billion capital increase signifies a pivotal step towards fortifying its financial foundation and advancing its growth trajectory. With a clear focus on enhancing patient care and addressing the increasing demand for oncology treatments, the company's strategic decisions are poised to make a significant impact in the healthcare landscape.