Perth-headquartered healthcare company Resonance Health Ltd today announced details of an expansion strategy for its US business operations.The changes include the intended acquisition of US based specialist pathology businesses, institutional investment by a Queensland investment group, and the appointment of Dr Gary Pace as chairman.The company has signed a non-binding letter of intent for the acquisition of a US-based anatomical pathology business, to complement RHT's focus on the commercialisation of its FerriScan technology.FerriScan involves an MRI scan followed by off¬site processing of the images by RHT using its patented methodology to generate the liver iron concentration result. MR data is then transmitted electronically to the RHT analysis centre from anywhere in the world, and the test requires no new equipment purchase at the MRI centre level. The acquisition will also help the development of a non-invasive tool to measure liver fibrosis. RHT's corporate advisors in the United States, the Montgomery Pacific Group, will source further acquisitions for RHT. The pathology acquisition will also strengthen access to referral channels and provide access to established US-based billing and operational infrastructure. The Target Company has annualised revenues in excess of US$5 million. The terms of the transaction relating to this business include payments in the form of cash and RHT shares with a total consideration expected to be US$9 million over 5 years, with 25% payable on closing and a further 15% earn-out payment due in each of the 5 subsequent years. The total consideration payable may increase or decrease subject to the ongoing performance of the Target Company. The minimum total consideration payable, subject to the company maintaining revenues, profitability and association of the principals will be US$5.37 million.The Queensland investment group proposal is for an amount of up to $8 million, and is subject to due diligence and other normal closing conditions. Dr Pace's appointment as chairman is part of a board restructure to support RHT's expansion plans. Dr Pace is currently chairman and CEO of QRxPharma Pty Ltd and a director of a number of Australian and US companies, including: Protiveris Inc., ResMed, Inc. and Peplin Ltd.He is also a Visiting Scientist at the Massachusetts Institute of Technology (MIT), an Adjunct Professor at the University of Queensland and a member of the
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