Key investor doubles down on Singular Health backing

Singular Health Group’s biggest shareholder has reaffirmed its belief in the med-tech company by splashing more cash into its kitty, adding another $770,000 to the major investment it made back in November.

At 16c per share – a premium placement of 39 per cent compared to the last closing price of 11.5c – key stakeholder Marin and Sons will pick more than 4.8 million new fully-paid ordinary shares in the medical technology developer. While the latest deal is still subject to shareholder approval, the investment builds on the United States-based public relations and political communications specialist’s substantial participation in the $850,000 placement taken up by CG1 Ventures late last year.

Importantly, the Steve Marin-run investor has agreed to waive its monthly retainer as Singular’s US corporate advisory and public relations services in favour of a purely success-based remuneration structure. Instead, it will receive 1 million performance rights based on Singular receiving a binding, unconditional contract with a minimum value of US$1 million (AU$1.5 million) over more than 18 months from a managed service organisation in the US.

Management says the business introductions and in-country expertise provided by Marin and his team has been instrumental in progressing Singular’s commercialisation in the US.

The company has been busy with some big moves in the North American nation in recent months, including the receipt of a binding purchase order for its patented 3Dicom technology from Las Vegas-based Roseman University in Nevada. The US$100,000 (AU$152,000) binding purchase order is for a two-year period for 50 of the company’s 3Dicom research and development (R&D) licenses and 5000 of its 3Dicom Patient licenses for college students and patients treated at the university’s medical school.

This large financial investment, in addition to their already substantial financial investment recently, demonstrates significant confidence by Marin and Sons in the commercial prospects of Singular Health’s software and we look forward to advancing discussions with large healthcare groups in Florida and South-East USA.

The 3Dicom device allows practitioners such as dentists, surgeons and radiologists to convert conventional 2D MRI, CT and PET scans into immersive 3D images. The change provides a clearer insight into a patient’s medical problems and enables better surgical planning.

The product comes in three distinct categories – 3Dicom MD is used by medical practitioners for diagnosis and treatment, 3Dicom Patient allows patients to store medical records and works in conjunction with practitioners using the 3Dicom MD software, while 3Dicom R&D is primarily used as a learning and teaching aid in education facilities, including universities, around the world.

Late last month, Singular revealed it had closed out the March quarter with a solid bank balance of more than $3.5 million – with a further $1 million still slated to come from another key investor, prominent global cryptocurrency identity Craig Sellars.

A successful capital raise of $4.1 million, in addition to the receipt of the $850,000 in strategic investment from the venture arm of its US master distributor Charlie Golf One Solutions (CG1), significantly built the company’s kitty compared to a balance of just $13,000 at the end of previous quarter.

With plenty of financial support and the doubled-down backing of its own US corporate advisor, the medtech provider could be primed to make serious inroads into the lucrative American market this year.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au