Azure Healthcare Ltd Update – Takeover Proposal dropped, FDA registration granted.

Azure Healthcare Ltd (ASX: AZV) just announced that the takeover offer won’t proceed, and shareholders dumped their shares enthusiastically. I continue to hold, as I was never particularly excited about the takeover offer anyway. The long term future for Azure is bright, as it rolls out its solutions to more and more hospitals in the US. Because the new, more complete system has recurring revenue, Azure should increasingly have more stable growing cashflow. For the next 30 years or so, demand for hospital beds will only be going up. Azure helps hospitals profit more from each bed, and US hospitals love to profit.

It has also recently been announced that Austco has received FDA registration for its Tarcera Nursecall product. The company’s new manufacturing facility in Texas has opened, and I hear that if demand supports it, the company can easily add more shifts to the plant. That means, that the company will be able to milk more out of the capital expenditure outlay.

In a recent Update Austco announced, “Austco’s new manufacturing facility in Dallas, Texas will have record shipments during the month of May to fulfill over USD$5 Million in secured orders across North America. The USA Factory is working extremely hard to boost factory production as it attempts to keep up with this rapid surge in orders.”

I think Azure Healthcare remains a good investment and I’m holding my shares.

The Author owns shares in Azure Healthcare. Nothing on this website is advice, ever. The purpose of this blog is to keep track of my decisions and invite feedback

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Comments

One Response to “Azure Healthcare Ltd Update – Takeover Proposal dropped, FDA registration granted.”
  1. Hmm I just sold some of my AZV shares in a couple of batches (38c and 39c). Good news seems somewhat priced in, but will hold the rest for euphoria…

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