Perth-based medical technology company Visiomed Group Ltd will acquire NSW respiratory device business Breath-a-Tech under a cash and scrip offer, complementing the company's existing Funhaler product range.
The acquisition will be funded by an issue of options at 1.2c each on a one-for-one basis to raise approximately $3.5 million, underwritten by Paterson Securities.
The agreement will see Visiomed acquire Breath-a-Tech for an initial cash consideration of $1.8 million and 16.6 million shares at three cents each. In addition, contingent on product sales meeting performance targets, the company will pay the vendor three additional instalments consinsting of a cash consideration of $200,000 as well as $316,667 in shares at a price of five cents, seven cents and nine cents respectively in October 2007, 2008 and 2009.
According to a Visiomed announcement, Breath-a-Tech, a subsidiary of Newcastle-based Scott Dibben Pty Ltd, holds 70 per cent of the Australian asthma spacer market, distributing the technology under the trade name "Optichamber."
Visiomed recently appointed Anita Wehrli to secure distribution and develop markets for the company's Funhaler device, an asthma spacer designed specifically for children.
Company chief executive William Dolphin said the acquisition was a key strategic investment that would create revenue and expand their product line.
Visiomed has also retained Scott Dibben director Philip Dibben to consult the company over the next four years.
