Pharmacy to raise capital for acquisitions

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Life Pharmacy is looking at ways to raise up to $8 million in the next two to three months, to be used for working capital management and acquisition capital.

A renounceable rights issue to all shareholders was likely but no decisions had been made, the company said today.

Last month Life Pharmacy said it had bought Care Chemists for an undisclosed sum.

For the year to the end of March the company made a net loss of $570,000, while revenue rose 28 percent from a year earlier to $6.4m.

Factors affecting its results included short term impacts from new stores, costs from the first year of a new Life Pharmacy "Living Card", and overall softening in the retail sector, the company said.

Life Pharmacy shares last traded on June 3 at 52c, having ranged between 75c and 46c in the past year.

NZPA