LBT Innovations (ASX:LBT) to acquire Clever Culture Systems for AU$4M

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LBT Innovations (ASX:LBT) to acquire Clever Culture Systems for AU$4M

LBT, Acquisition, 100% ownership, ASX
Image source: © Putilich | Megapixl.com

Highlights

  • LBT Innovations Limited signed a share and loan assignment deed with Hettich to acquire 50% shareholdings of CCS.
  • The acquisition is expected to be completed by 31 December 2021.

Australian MedTech company, LBT Innovations Limited (ASX:LBT) has announced that it has signed a share and loan assignment deed to buy Hettich Holding Beteiligungs-und Verwaltungs-GmbH’s 50% stake in JV Clever Culture Systems (CCS).

After the acquisition, CCS will become the wholly owned subsidiary of LBT, and LBT will not owe any outstanding debt to Hettich. In addition to this, LBT will gain control over the commercialisation of APAS Technology, which was earlier under the supervision of CCS.

About CCS

Established in 2013, Clever Culture System was a 50:50 joint venture between Hettich and LBT. CCS was introduced to develop and commercialise the novel technology of LBT, APAS technology. Since 2013, significant investment led to the launch of the product globally, along with gaining regulatory clearance in the targeted market. In the last 12-months, the majority of the milestones were achieved, and channel partners were appointed in the US and EU. Therefore, the company feels it is the appropriate time to gain 100% ownership of CCS.

Transaction details

  • For acquiring 50% ownership of CCS, LBT will pay AU$4 million, including AU$17.3 million shareholder loan of Hettich.
  • AU$1 million will be paid in cash, issue of 30.66 million LBT shares valued at AU$2.8 million, and the issue of 8 million LBT options, valued at AU$0.2 million.
  • After completing the acquisition, Hettich will have 9.6% shareholdings in LBT.
  • Post-acquisition, LBT will have around AU$5.5 million in cash reserves and expect to receive AU$0.8 million under Research and Development Tax Incentive.

On Wednesday, LBT shares were trading at AU$0.096, 5.45% higher on ASX at 12.13 PM AEST.

Bottom Line

With the acquisition, new value has been unlocked for LBT shareholders. Since the company acquired CCS when commercialisation at the global level is about to begin, the company will enjoy an increase in the margins.

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