While the underlying profits of its two businesses are steady the combined Life Pharmacy and Pharmacybrands entity has had to write off more than $3 million due to the merger.

In September Life Pharmacy completed a full takeover of Pharmacybrands shares after more than 90% of Pharmacybrands shareholders accepted its offer and sold their shares in exchange for Life Pharmacy shares.

In its first set of financial results since the merger the company reported under the name Life Pharmacy, but it will be changing its name to Pharmacybrands in the second half of the year.

In a move that will make Life Pharmacy the biggest pharmaceutical retailer in New Zealand, it has entered into a merger agreement to buy 100% of Pharmacybrands in a share swap.

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.

Life Pharmacy Limited (LPL) has acquired Care Chemist Services. In a statement to the NZX, the companies announced LPL had acquired Care Chemists for an undisclosed sum and would continue to operate the Care Chemist franchise company as a separate legal entity.

LPL said the new acquisition was complementary and would enable it to continue to grow a community-based pharmacy franchise group. The companies said their combined resources would allow the organisation to offer a well-considered umbrella brand to pharmacies. LPL shares last traded on Tuesday at 48 cents.