Singular Health Group is set to pocket up to $850,000 in strategic investment from the venture arm of the recently-appointed US master distributor Charlie Golf One Solutions (CG1), which will market the company’s 3D medical imaging software in the United States.
The company confirmed today it has received a binding commitment to raise between $500,000 and $850,000 through the issue of fully-paid ordinary shares to CG1 Ventures as part of a strategic investment at a 41 per cent premium to its previous ASX closing price of 39 cents.
The stock rose to as high as 51c in today’s intraday trading.
Last month, Singular appointed CG1, a South Florida-based information technology firm owned and run by US Department of Defense veterans and service-disabled veterans, to take on the US distribution of its “3Dicom” medical imaging software.
We are very pleased to welcome CG1 Ventures’ strategic investment in Singular Health as we plant the flag in Florida and continue to grow our footprint in the United States through our Master Distributor, CG1 Solutions, and their team of sales partners. Building on from our appointment of CG1 Solutions as our Master Distributor in the United States just last month, this investment is a strong sign of confidence in achieving commercial contracts in the near-term future. These funds not only provide for additional capital and runway as we pursue larger scale enterprise opportunities in the United States but demonstrate a much closer collaboration between Singular Health and CG1, and the strong interest in the 3Dicom software in the United States both commercially and corporately. Singular Health Group interim managing director and chief executive officer Denning Chong
3Dicom is an online application with low overheads that enables patients to receive their own medical scans from practitioners using a QR code. They can store it on a mobile device and it can be visualised in two or three dimensions, with annotations from a patient’s medical team.
Singular says its application works in 3D with more than 95 per cent of all standard 2D medical image files, such as MRI and CT scans, improving practitioner–patient communication and patient comprehension of treatment plans.
CG1 has a proven record in commercialising software applications and has established a significant network of partner organisations operating in federal government and commercial sectors. Interestingly, the company name stems from the Navy phonetic alphabet code communicated using flags in the pre-radio era and means “standing by and ready to assist”.
On the back of a higher level of functionality, perceived value to customers and advice from international sales partners, Singular increased its manufacturer-suggested retail price for its respective 3Dicom software solutions by 175 per cent and 166 per cent for its 3Dicom R&D, which uses artificial intelligence (AI), and its 3Dicom MD, for practitioner use.
The new price points resulted in higher average revenue per user, while only reducing new subscriber numbers by about 30 per cent, leading to higher monthly-recurring revenue and customer lifetime value. The move was made to align the company’s pricing strategy with its customer-value perception in the US market.
As part of the US distribution deal, the companies have been working to develop an enterprise sales pipeline that encompasses several large-scale, but longer lead-time, federal government agency projects and corporate licensing deals – and in the short-to-medium term, enterprise sales to big healthcare institutions in South Florida.
Building on the appointment of CG1 as a master distributor, and in partnership with Washington DC-based public sector sales partner Seventeen Consulting, Singular last week attended the 2023 Defence Health Information Technology Symposium.
The opportunity afforded management direct interaction with military procurement decision-makers, who it says displayed keen interest in the idea of using the 3Dicom Mobile app to securely store service personnel’s medical records within their personal devices.
On the hardware front, Singular is moving forward with 3D-printed bespoke implants and the past quarter saw the company wrap up work at its manufacturing facility in Perth. It revealed significant structural and functional improvements, including enhancing its selective laser sintering printer using 3D-printed parts to improve performance.
4D Medical (4DX) signed an agreement in April this year to supply its medical imaging technology to the University of Miami. As a result, the company’s share price jumped from a close of 31.5c to peak at 55.5c on the day of the news. 4DX now has a market cap of $246.77 million.
In comparison, Singular has a market cap of $6.57 million, suggesting plenty of room to grow – particularly if it can keep nailing deals in the lucrative US health market..
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