The Volpara Health Technologies Ltd (ASX: VHT) share price is on watch today after founders and early investors sold some shares.
Volpara describes itself as a ‘MedTech Software as a Service’ company that was founded in 2009 on research conducted at Oxford University. Its software is used for screening clinics to provide feedback on breast density, compression, dose and quality. Its VolparaEnterprise business provides role-specific dashboards and wide-ranging benchmarking analytics to help clinics manage their business more efficiently.
Volpara Share Selldown
Volpara announced this morning that a group of its founders and early investors, some of which are directors, have sold a portion of shares to institutional investors.
The block trade involved 6.1 million shares, which is around 2.8% of Volpara’s shares on issue. The various parties involved sold around 12% of their respective holdings, reducing their combined holdings to approximately 23% of Volpara’s shares.
Last week the company conducted a series of investor roadshows across Australia which culminated in a (unsolicited) approach from a broker on behalf of several international and domestic institutions that wanted to purchase shares but were unable to build a suitable position on the market.
Dr Ralph Highnam, who sold 2 million of his 18.2 million shares, said: “We’ve been on the radar of many of the big domestic and international institutions since the capital raise early this year, but not all of those parties were able to participate in the raise due to demand.
“Upon receiving the approach to cross the parcel of shares, the Board considered the offer and agreed that it would be beneficial for the Company and its shareholders to strengthen its institutional shareholder base and increase the proportion of stock held in free float.”
Volpara Chairman Paul Reid added, that the Directors have advised they have no intention to sell further shares in the foreseeable future.
I wouldn’t be necessarily worried about the selldown. As businesses get bigger they need to give the market a certain amount of liquidity, and it also makes sense that the early shareholders would want to take some profit off the table.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.