Resonance aims to grow US business

HEALTHCARE company Reso-nance Health Ltd has announced details of an expansion strategy for its US business operations. The changes include the acquisition of a US-based specialist pathology business, institutional investment by a Queensland invest-ment group, and the appointment of Dr Gary Pace as chairman. The company has recently signed a non-binding letter of intent for the acquisition of a, anatomical pathology business based in the US, which the company declined to name. Resonance Health managing director Dr James Williams said the intended acquisition would provide the company with an established business to facilitate the continued roll-out of its FerriScan liver treatment. “[The intended acquisition] will see the putting together of a more sustainable business,” he said. “It is a very positive move and a great model for developing the business.” In its announcement, Resonance said the target company had annualised revenues of more than $US5 million ($A6.7 million) and the terms of the transaction included payments in the form of cash and Resonance shares with a total consideration expected to be $US9 million ($A12.1 million) over five years. The minimum total consideration payable, subject to the company maintaining revenues, profitability and association of the principals will be $US5.37 million ($A7.3 million). In connection with the acquisition, the company received a non-binding letter of intent from a Queensland investment corporation fund for an investment in Resonance of $8 million at $0.063 per share. The company also announced the appointment of Roger Greene, Michael Dalsin and Guy Aird as non-executive directors, while Dr Michael Wooldridge has become deputy chairman, and Ian Anderson and Dr Andrew Walker remain as non-executive directors.