Headquartered in Melbourne, Australia, BTC health Ltd (ASX: BTC) provides development capital and management expertise to fast-growing Australian medtech, biotech and pharmaceutical companies. The company also delivers exceptional partnering, product development and commercialisation capabilities across the Asia-Pacific region. The company focusses on the development and commercialization of specialized medical products distributed through hospitals.
In an announcement released on the Australian Stock Exchange, on 13 May 2019, BTC health notified that its 100% owned subsidiary, BTC Speciality Health Pty Ltd has partnered with Admedus Limited (ASX: AHZ) to acquire part of its Hospital Infusion Business for $6.3 million. The acquisition incorporates the renewal of an 8-year exclusive distribution agreement with Summit Medical Products for the ambIT® range of infusion pumps in New Zealand and Australia. It also includes the transfer of certain key employees like the current Infusion Business Unit Head, Glenn Gilchrist and the purchase of all saleable inventory.
Summit Medical Products, CEO Mr LeVoy Haight is optimistic about the successful promotion of the ambIT® line by BTC Health. Mr Haight believes that BTC health will continue to build on its position as a strong competitor in the territory.
The company also released an investor presentation on the ‘Hospital Infusion Business Acquisition and Capital Raising’ today.
BTC health, Executive Chairman, Richard Treagus considers this as a transformative acquisition for BTC health which has brought set revenues, an experienced national sales and specialist education team and a quality range of innovative hospital products. The acquisition has provided the capability and capacity for the introduction of new products in the BTC health pipeline, commented the Executive Chairman.
The innovative ambIT® infusion pumps are designed to allow patients the ability to receive drug infusions; and they are a portable, flexible and cost-effective alternative to traditional stationary pumps. The annual sales of the ambIT® infusion pumps are anticipated to be approximately $7 million in FY 2020. The acquisition gives a platform to BTC health to drive organic growth in the public and private hospitals within Australia and New Zealand.
The sale of the hospital infusion business is expected to complete on 31st May 2019. However, there are certain conditions like completion of the capital raising process to finance the transaction by BTC health.
The acquisition will be funded by a private placement of $8.0 million - $2.6 million in Tranche 1 and $5.4 million in Tranche 2. The placement will be offered to sophisticated and wholesale investors at an offer price of $0.08 per new share. $2.6 million will be raised under the 25 percent private placement capacity to settle and shares issued immediately under ASX listing rule 7.1 & 7.1A. However, $5.4 million will be subject to shareholder approval with subscription price payable and shares issued after shareholder approval obtained.
The securities of the BTC health were placed under the trading halt on 13 May 2019, pending a release of an announcement related to the capital rising, until the earlier of the commencement of normal trading on Wednesday, 15 May 2019.
The company’s stock traded last on 9th May 2019 at AUD 0.085 and around 9,000 number of shares were in the trade that day.
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