ASX Tech Stocks: Limeade surges more than 300% on $112 million WebMD takeover

Employee wellbeing company Limeade to be taken over by US-based Web Health Services for ~$112 million
Appen raises $29.5 million under entitlement offer with a total $60 million raised when combined with institutional component
IoT company Zimi raises $580 from a recent capital raise and can offer shortfall to new investors

Limeade (ASX:LME)

The LME share price has surged more than 300% this morning after the company announced it will be 100% acquired by US-based WebMD Health Services, part of WebMD Health Corp for an all cash deal valuing the company at ~$112 million.

WebMD will acquire 100% of the shares/CDIs in the employee wellbeing company for cash of $0.425 per share/CDI. The offer price represents a 325% premium to the last traded price of Limeade and a 217% premium to the 30-day volume-weighted average price (VWAP) to June 7, 2023.

LME said the offer price implies a fully diluted market capitalisation for Limeade of ~$111.5 million and an enterprise value of ~$112 million.

The company said binding voting and support agreements have been signed with major shareholders.

The merger will be governed by Washington State Law, not the Australian Corporations Act, and is subject to approval by holders of a majority of LME shares/CDIs and other conditions stipulated in the deal. LME said the transaction is expected to close in Q3 CY23.

According to the WebMD Health Services website it has been “designing well-being programs for employers and health plans for over 20 years”.

The company also has its WebMD health information platform that provides medical content, tools, and resources to both healthcare professionals and the general public.

“Limeade and WebMD Health Services creates the only truly complementary combination of culture and well-being in the market, allowing us to maximize health and well-being for all people and deliver better service, support and capabilities for our clients,” Albrecht said in an ASX announcement.

“We are confident that the combination will bring together WebMD Health Services human expertise and Limeade technical innovation into a comprehensive solution that will have a positive impact on people and companies worldwide.”

Appen (ASX:APX)

The artificial intelligence (AI) training data services has completed the retail component of its 1 for 6 accelerated non-renounceable entitlement offer raising ~$29.5 million at $1.85/new share.

The institutional component of the entitlement offer and the institutional placement were completed on May 17, 2023.

The total amount raised under the combined equity raising is $60 million, which will be used to support the business in its effort to return to profitability.

In May APX said there had been little reprieve from challenging external operating and macroeconomic conditions noted in its FY22 result and they have persisted into FY23.

APX said the retail entitlement offer saw strong support with 8.4 million valid applications for retail entitlements received for $15.6 million, representing a take up rate by eligible retail shareholders of approximately 55%.

There were 7.5 million new shares not taken up under the retail entitlement offer, which will be allotted to the sub-underwriters.

APX said 16 million new shares issued under the retail entitlement offer are expected to be allotted on June 14, 2023 and are expected to trade on ASX on a normal settlement basis on June 15, 2023, ranking equally with existing APX shares on issue.

Zimi (ASX:ZMM)

The IoT company has announced it raised $580k from a recent capital raise, which closed on June 2. Under the entitlement offer eligible shareholders could subscribe for 1 fully paid ordinary share (new shares) for every 2 fully paid ordinary shares held on the record date, at an issue price of 4 cents/per new share.

Eligible shareholder could also subscribe for 1 free attaching option with an exercise price of 8 cents and an expiry date of June 30, 2026 for every 1 new shares subscribed.

ZMM said it received valid applications for 14,517,361 new shares, representing $580,694 of gross proceeds from eligible shareholders, inclusive of applications for additional new shares under the shortfall offer in the prospectus.

The company, which connects everyday electrical products to the internet and each other to create smarter living and working spaces, said about 33% of eligible shareholders took up the entitlement offer.

ZMM can now place the remaining shortfall of 30,034,083 new shares and 30,034,083 options to new investors by no later than September 2, 2023.

New shares and options applied for under the entitlement offer along with 1 million lead manager options will be issued today. Normal trading of the new shares is expected to start after the long weekend on June 13, 2023.