Deal: MinterEllison has advised RedHill Education Limited’s capital raising to manage the challenges of COVID-19. 

ASX-listed tertiary education provider, RedHill Education Limited (RedHill), successfully launched a capital raising for $12 million on 16 June 2020.

The need for capital raising reflects the impact of COVID-19 on the education sector and the need to change and adapt service delivery models. 

Value: $12 million. 

Area: Capital raise.

Key players: Partner Nick Broome led this capital raising with Sudharshan Senathirajah (special counsel) and assistance from Alex Persano (lawyer) and Dylan Gaymer (graduate).

Deal significance: MinterEllison advised RedHill on their capital raising, which was conducted by way of placement and pro-rata accelerated non-renounceable entitlement offer. 

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The capital raising involved customary and new offer structuring issues, due diligence, regulatory oversight and timing imperatives.

“The education sector has felt the impact of COVID-19 restrictions keenly, with the loss of overseas students and limited face-to-face opportunities for service delivery,” Mr Broome said.

“RedHill has pivoted their approach by moving to fully online courses, focusing on organic growth and broadening their focus on the domestic market. This capital raising will [help support] those changes.”

The capital raising received strong support from existing shareholders and RedHill welcomed several new investors onto its share register.

According to RedHill the international student education is a large and resilient sector and has been identified as a priority industry to be restarted on the roadmap to a COVIDSafe Australia.

“We’re pleased to support RedHill as they take advantage of emerging opportunities and facilitate operational change initiatives when economic conditions improve post the COVID-19 pandemic,” Mr Broome said.