Perth-based Safety Medical Products is focusing its activities back in the medical sphere, signing an agreement to acquire an unlisted 3D printing company six months after backing out of a deal to purchase a gold exploration project in Brazil.
SMP, which was once headquartered in Adelaide, went into administration in 2010 after sales of its SecureTouch safety syringes had plummeted.
Perth-based private equity firm Trident Capital stepped in to recapitalise the company via a deed of company arrangement.
Trident was able to raise around $750,000 to keep SMP afloat.
In October 2011, SMP held an option to acquire two copper-gold tenements in the Three Rivers area in the north-west of the state, but that option expired at the end of January last year, after having been extended for a month.
Midway through 2012, the company announced it was seeking to acquire Brazil-based gold exploration firm Kisara Gold, but it was unable to raise sufficient funds to complete the transaction.
SMP withdrew from that acquisition in December last year.
The company has no recorded revenue from ordinary activities in the past two years.
Today, SMP announced it was refocusing its efforts on the medical field, with the acquisition of 3D Medical.
3D Medical focuses on the commercialisation and integration of 3D printing and holographic projection technology into the Australian medical industry.
The company’s 3D printing creates physical three-dimensional models of a patient’s anatomical parts utilising the images and data already captured by conventional diagnostic imaging tools.
Under a share sale agreement, SMP will issue about 1.79 billion ordinary shares worth $7.17 million at today’s share price, and a pay an additional $100,000 in cash.
SMP will also issue 875 million options, expiring 24 months after completion.
The terms of the agreement to acquire 3D Medical are subject to due diligence, regulatory approvals and final documentation.
SMP said the application of these two technologies in the field of medicine has the potential to revolutionise patient treatment and care, by providing healthcare professionals with more meaningful information and greater insight into the complexities of patient anatomy.
SMP’s share price rose by 100 per cent to 0.004 cents at 12:10pm WST.
By Fraser Beattie and Dan Wilkie
