(MENAFN- ProactiveInvestors)
Healthcare products company (ASX: ITD) has entered into an agreement to acquire 100% of direct-to-customer pathology test provider MyHealth Test Pty Ltd (MHT).
ITL is looking to diversity into new growth opportunities as well as pursuing organic growth avenues.
The move will give ITL exposure to an early mover advantage in Australia’s direct-to-customer pathology test sector where MHT’s customers will order kits online to do dry finger prick blood tests at home.
A recent survey indicated that 62% of diabetics preferred this at-home method over the IV alternative.
Steps toward commercialisation of the system have included the establishment of test processing facilities test marketing during Diabetes Week in July and MHT’s award of $1 million grant from the Department of Industry and Science to fast-track the rollout of the home test.
ITL first flagged the MHT acquisition in April 2015 citing a number of conditions and terms that were quickly met in an effort accelerate the timeline of the deal.
ITL chairman Bill Mobbs holds about 67% of MHT allowing the transaction to advance as a related party acquisition.
Compensation for the acquisition included an exchange of MHT shares for ITL shares in an amount to be calculated by dividing A$2 million by an issue price of $0.20 which was a recent market price for ITL shares.
ITL was trading higher on the news today around $0.22 per share.
The acquisition remains condition on ITL obtaining shareholder approval at a general meeting.
ITL reported a 10% increase in revenues over FY2015 to $28.3 million and a 5% increase in net profit to $2.1 million.
ITL’s medical devices have a presence in over 50 countries and supplies its range of customised medical procedure packs to over 200 hospitals across Australia.
The Group’s gearing measured as net debt as a percentage of net debt plus equity was 28% (2014:26%).
The company’s cash on hand at the end of FY2015 was $1.1 million compared to only $122000 at the same time in the prior year.
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