Osteopore

Osteopore to Acquire Multiple Medical Distribution Businesses & Become Vertically Integrated

Osteopore Limited (ASX: OSX) (“Osteopore” or the “Company”), a revenue-generating manufacturer and distributor of regenerative implants that empower natural tissue regeneration, is pleased to announce it has entered into a binding asset purchase deed (“Asset Purchase Deed”) with Mr Lim Jae Hoon (an unrelated party to the Company) (“Vendor”) to acquire (“Proposed Acquisition”) 100% of the Osteopore distribution businesses carried on by Lomic Korea Co., Ltd, 3D Aesthetic Solutions Pte Ltd, 3D Healthcare Solutions Co., Ltd and 3D Aesthetic Medical Equipment and Supplies Trading (“Target Businesses”).


Highlights:

  • Osteopore has entered into a binding asset purchase deed to acquire multiple medical distribution businesses that are currently responsible for approximately 40%-45% of Osteopore’s total sales globally.
  • The acquisition is a direct result of Osteopore’s strategy to supercharge revenue growth, become cash flow positive and profitable at a faster rate whilst maintaining steady organic growth.
  • The acquisition will transition Osteopore towards a vertically integrated business, controlling the entire process from manufacturing and marketing, through to direct retail sales.
  • By selling direct to customers (as opposed to via distributors) the Company expects to achieve greater revenue and increased margins, due to removing the distribution layer between Osteopore and its end customers.
  • The transaction will create a dedicated sales team with localised knowledge and networks across key target markets, along with an internal business development team with deep expertise in the aesthetic segment to lead our strategy for deeper penetration into the global aesthetic market in 2023.
  • The acquisition consideration is part cash (no cash upfront due to the offsetting of debtor balances) and performance rights (subject to achieving performance milestones).
  • Osteopore continues to investigate the viability of additional potential acquisitions and partnership opportunities in the 20 countries which it is already selling products, including the US, Europe, and Asian markets like Singapore, South Korea, Vietnam, Malaysia, and Indonesia.

The Proposed Acquisition was first announced by the Company on 22 December 2022.

The Target Businesses are currently responsible for distributing Osteopore products and have historically been the Company’s top distributor groups - contributing approximately 40%-45% of Osteopore’s total sales over the past few years. The sales are primarily related to the aesthetic market in South Korea, complemented by sales in Singapore, Thailand, Vietnam and the Philippines.

Osteopore will acquire 100% of all business activities relating to the marketing, sales and distribution of Osteopore products from the Target Businesses (see key terms below), including the sales teams, office premises, distribution networks and business contracts. The Target Businesses are estimated to be fully integrated into Osteopore shortly, with no disruptions expected to occur in regards to current business activities and sales during the process.

Osteopore’s CEO, Goh Khoon Seng said: “This acquisition will allow Osteopore to be vertically integrated across an estimated 40%-45% of our business. This means we will control the entire process from manufacturing, marketing and direct “retail” sales. The potential benefits of this are highly encouraging, including the immediate creation of a proven direct sales team, direct access to an extensive network of hospitals and surgeons, along with the anticipated benefit of supercharging revenue and increasing margins.”

Osteopore’s Executive Chairman, Mark Leong added: “We are enthused as this transaction marks our first acquisition since listing on the ASX, adding complementary synergistic value and exciting organic growth to complement the strong traction seen to date. This sets us on an accelerated path towards positive cashflows. This is the start of an exciting chapter and we will continually seek more opportunities to further boost our trajectory.

Click here for the full ASX Release

This article includes content from Osteopore Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

OSX:AU
The Conversation (0)

Bausch Health, Canada Inc. Announces Additional Public Drug Plan Listings for PrUCERIS Aerosol Foam To Treat Mild to Moderate Distal Ulcerative Colitis in Adults

Bausch Health, Canada Inc., part of Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC), today announced additional Canadian public drug plan listings for Pr UCERIS ® (budesonide) aerosol foam to treat mild to moderate distal ulcerative colitis in adults. 1

UCERIS has most recently become available for patients through the public drug plans of Alberta, Prince Edward Island and Newfoundland and Labrador, as well as to beneficiaries of the federal drug plans for Indigenous people through the Non-Insured Health Benefit (NIHB) and Veterans Affairs Canada.

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less

Medtronic reports full year and fourth quarter fiscal 2024 financial results; announces dividend increase

Broad-based, durable growth across the company, including Cranial & Spinal Technologies, Diabetes, Cardiac Pacing, Surgical, and Structural Heart; gaining momentum as company enters new product cycles across many high-growth markets

- Medtronic plc (NYSE:MDT) today announced financial results for its fourth quarter (Q4) and fiscal year 2024 (FY24), which ended April 26, 2024 .

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less

Thermo Fisher Scientific Declares Quarterly Dividend

Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today announced that its Board of Directors authorized a quarterly cash dividend of $0.39 per common share, payable on July 15, 2024, to shareholders of record as of June 14, 2024.

About Thermo Fisher Scientific

News Provided by Business Wire via QuoteMedia

Keep reading...Show less
Cleo Diagnostics

Cleo Diagnostics


Keep reading...Show less

MiniMed 780G system recognized among Fast Company's 2024 World Changing Ideas

Award recognizes the commitment of Medtronic to revolutionizing diabetes care

Fast Company announced that the Medtronic MiniMed™ 780G automated insulin delivery system has been recognized in the Best World-Changing Idea, North America category as part of the 2024 World Changing Ideas Awards.

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less

Medtronic Affera Mapping and Ablation System with Sphere-9 Catheter achieves endpoints for safety and efficacy, providing promising evidence for the future of atrial fibrillation treatment

HRS late breaking data: SPHERE Per-AF trial demonstrates novel all-in-one system delivers exceptional results, plus increased efficiency and improved quality of life

- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced positive results demonstrating excellent safety and efficacy of the Affera™ Mapping and Ablation System with Sphere-9™ Catheter, an all-in-one pulsed field (PF) and radiofrequency (RF) ablation and high density (HD) mapping catheter for the treatment of persistent atrial fibrillation (AFib). The SPHERE Per-AF study, a U.S. Food and Drug Administration (FDA) Investigational Device Exemption (IDE) pivotal trial, compared Sphere-9 to the conventional Thermocool SmartTouch® SF radiofrequency ablation catheter with the Carto™ 3 System. Findings were presented as late-breaking clinical data at the Heart Rhythm Society (HRS) 2024 Annual Meeting and simultaneously published in Nature Medicine .

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×