- Singular Health (SHG) is acquiring certain assets from Perth-based 3D printing company Global3D in an all-scrip transaction
- Under the purchase agreement, Singular Health will pay 5.5 million shares and around 1.7 million free-attaching unlisted options, and Global3D may earn further shares and options subject to revenue targets
- SHG’s new subsidiary, Singular 3DP, will invest between $100,000 and $150,000 in upgrades to broaden the Singular customer base and generate more sales
- Singular plans to raise up to $1 million through a share purchase plan to support diagnostic clearances for software, sales and marketing, and the Global3D acquisition
- SHG shares ended the day trading 10.3 per cent in the red at 13 cents
Singular Health Group (SHG) has entered an asset sale agreement with Perth-based 3D printing company Global3D.
The agreement will see the medical technology company acquire certain 3D printing assets, related plant and equipment, and intellectual property from Global3D, as well as take over the majority of Global3D’s existing medical-focused 3D printing business.
Among Global3D’s assets to be acquired by SHG is a 347-square-metre facility in Bibra Lake, WA. This facility has been fitted out with three industrial printers, post-processing and clean rooms, and an office space for onsite design work.
Singular Health’s new subsidiary, Singular 3DP, will invest between $100,000 and $150,000 to upgrade the 3D printing system to be able to print higher-risk surgical guides and implantable medical devices.
The money will also be invested in a post-processing plant and equipment to improve the quality of Global3D’s ankle-foot-orthoses (AFOs) and prosthetic check sockets to broaden its customer base and generate more sales.
According to SHG, the number of patients in Australia needing custom check sockets is growing by 8000 every year in Australia, which means there’s a substantial market for these devices.
“This acquisition of Global3D’s business and assets in conjunction with our investment in Australian Additive Engineering in Melbourne provides a unique national coverage for the design and 3D printing of patient-specific medical implants and prosthetics,” SHG Managing Director Thomas Hanly said.
Singular Health will pay 5.5 million shares and around 1.7 million free-attaching unlisted options for Global3D’s assets. The options can be exercised at 20 cents and expire three years from their date of issue.
Global3D may earn up to a further 900,000 shares and 280,000 free-attaching unlisted options in the event Singular 3DP achieves more than $550,000 in gross revenue within the 12 months of the transaction’s completion.
The companies expect the transaction to be completed on January 9, subject to certain conditions being satisfied.
In addition to this acquisition, Singular Health is launching a share purchase plan (SPP) to raise up to $1 million.
Eligible shareholders may subscribe for up to $30,000 worth of shares at 11.5 cents between December 6 and December 19. The issue price represents an 18.2 per cent discount to SHG’s five-day volume-weighted average price.
The company will use the fresh capital for diagnostic clearances for software in the US, Canada and Australia, sales and marketing, costs of the SPP and Global3D acquisition, and for general working capital.
SHG shares ended the day trading 10.3 per cent in the red at 13 cents.