Singular Health will ramp up the sales pitch to get its medical technology entrenched in the lucrative US health sector after confirming an $850,000 placement to American IT solutions company, CG1 Ventures.
The windfall, at a 34 per cent premium price of 5.5 cents a share, comes after the company’s coffers were boosted recently by an $823,475 research and development (R&D) tax incentive rebate.
The commitment from CG1 – the ventures arm of Singular’s master US distributor, Charlie Golf One Solutions – was first broached in August, with the deal then outlining an investment of between $500,000 and $850,000. But CG1 has now confirmed the maximum amount, which will be paid through a series of monthly instalments until February next year.
CG1 is a South Florida-based information technology firm owned and run by veterans and service-disabled veterans.
Singular’s tax rebate related to activities regarding its 3Dicom medical device (MD) software with Sony Electronics’ Spatial Reality Displays and research into using more cost-effective materials in its 3D printing facilities.
The company had previously revealed in April that Sony was likely to “actively promote” its 3Dicom medical device as a complementary application for the global giant’s second-generation Spatial Reality Display.
It is on a mission to orchestrate licence sales in US hospitals for its 3Dicom product, which can deliver x-ray, MRI and CT scan images to patients to be viewed and shared via mobile phones. The technology has been designed to empower patients and practitioners to better visualise, communicate and understand medical imaging data and has been cleared for diagnostic use by the US Food and Drug Administration.
With the recent receipt of sizeable R&D refunds, and now CG1 Venture’s commitment to the full placement at a 34 per cent premium to our last closing price, Singular Health is well positioned to focus on the completion of sales in the United States through our highly supportive Master Distributor and Partner, CG1 Solutions. Singular Health managing director and chief executive officer Denning Chong
The latest deal with CG1 is a significant early win for Singular co-founder Chong, who was confirmed only last month as the company’s managing director and chief executive officer following the resignation of former boss, Thomas Hanley. The funds are expected to give the company greater flexibility to explore larger-scale opportunities in the US on the back of strong commercial and corporate interest in its 3Dicom software.
A major financial aspect of Singular’s Perth-based operation is its strategy and objective to realise significant vertical integration from medical imaging to 3D printing. It is a plan which seems well-founded given the advances made in 3D-printing technology and the burgeoning prosthetics market, which is expected to grow by 7.7 per cent annually and reach $3.4 billion by 2030.
CG1 is a significant entity in the US and has not been too shy to shout its praise for Singular’s products. The group’s managing partner Edwin Rivera says CG1 sees significant potential in Singular’s 3Dicom software and medical file transfer protocol and would immediately start working towards expanding its footprint in the US.
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