By Bob Dey
ElderCare plans to double in size over the next two years and has authorised placement by the board of shares worth $10 million to help pay for it.
ElderCare gained a backdoor listing in May through the reverse takeover of NZ Petroleum, a near-penniless oil exploration investor.
NZ Petroleum ended
its days losing another $3 million and taking accumulated losses to $16.8 million. After a conversion of notes, a rights issue, injection of $55.5 million of assets and acquisition of term and current debt from the ElderCare deal, it is now a highly geared company - $6.9 million of equity to a total $55.8 million in liabilities.
The difference is that as NZ Petroleum it was dead in the water, as ElderCare it is growing rapidly in a growth sector.
ElderCare's chief executive, David Lowry, told yesterday's annual meeting the initial growth focus was on acquisition followed by facilities development. It planned to be less of a property market play, preferring to grow earnings from in-house care fees.
It has 813 residents in 12 rest homes and three assisted-living facilities and plans to have 1527 residents in two years - more if there are acquisitions.
