Acquisition and Placing
This announcement contains inside information which, prior to its disclosure, was inside information for the purposes of the Market Abuse Regulation (Article 7 of Regulation (EU) No 596/2014.
Acquisition of deep-learning image analysis company, Intelligent Ultrasound, for up to £3.6m & Placing to raise £5.5m
MedaPhor Group plc (AIM: MED), the global provider of advanced ultrasound skills training simulators for medical professionals, announces its intention to acquire Intelligent Ultrasound Limited (“Intelligent Ultrasound” or “IUL”), a University of Oxford spin-out company that develops image analysis software for ultrasound, for up to £3.6m and that it is has conditionally raised £5.5m before costs to finance the Enlarged Group’s new product development plans and working capital requirements.
- IUL, founded by world leading academic, Professor Alison Noble OBE FREng FRS, develops deep learning based ultrasound image analysis software
- Acquisition of IUL for up to £3.6m, to be satisfied predominantly by the issuance of new Ordinary Shares at a price of 16.22p each
- Acquiring IUL will allow MedaPhor to expand its existing ultrasound simulator business into the larger ultrasound related software market
- Conditionally raised £5.5m before costs, to be satisfied by the issuance of 44,125,324 new Ordinary shares at a price of 12.5p each
- Net funds to be used to:
- develop the Intelligent Ultrasound suite of products
- further develop augmented reality products, inc. an ultrasound needle guiding assistant
- further develop the existing MedaPhor simulator and training division
- finance the working capital requirement of the Group
- No EIS/VCT funds raised from the Placing will be applied to any cash consideration element or fees relating to the acquisition.
The Transaction is conditional, inter alia, upon the passing of the Resolutions at the General Meeting, which will be held at 10.00am on 5 October 2017 at 44, Southampton Buildings, London WC2A 1AP. Following shareholder approval it is expected that Admission of the Completion Consideration Shares will occur and that dealings will commence at 8.00am on 6 October 2017.
Commenting on the proposed acquisition, Stuart Gall, Chief Executive of MedaPhor, said: “This is a strategic acquisition that will expand our existing ultrasound training simulator business into the larger clinical ultrasound software market. Combining Intelligent Ultrasound’s exciting deep learning image analysis software with our existing management, R&D and sales networks, will speed up the commercialisation of the IUL products currently in development and we look forward to working with their excellent team to realise this objective.”
Full announcement is available here.
More information can be found on the financials and circulars page of the website here.