17th Jun 2016 07:21
LONDON (Alliance News) - Tekcapital PLC Friday said it has invested USD500,000 into a subsidiary that was formed last year to manufacture and sell medical devices that are deemed as non-core products by larger companies to push its stake up to 74%.
Belluscura Ltd was established in the UK back in December to provide premium proprietary medical devices and plans to acquire, manufacture and then sell the devices deemed to be non-core or undervalued by leading medical device companies.
To date, Belluscura has been financially supported by Tekcapital to fund the expenses of setting up the company, engaging its management team and starting marketing, and Belluscura has just begun to record sales.
The subsidiary has now conducted a private placement to raise USD1.5 million in total.
Tekcapital said the investors which took part in the private placement, the details of which were not revealed, invested on the basis of a USD4.5 million valuation of Belluscura following the placing.
Tekcapital invested USD500,000, or a third of the total value of the placing, and now holds over a 74% stake in the business - however, Belluscura plans to extend the private fundraising for an additional 90 days to enable additional investors to participate - meaning that stake could be diluted if more investors come on board.
Belluscara acquired the exclusive licences to manufacture and sell three medical products from Stryker Corp back in April; the lightweight stretcher named Slyde, a surgical trocar for keyhole surgery named Passport and SNAP II, a system which monitors the level of conciousness during surgical procedures.
Belluscura plans to subcontract the manufacturing of SNAP II, Passport and Slyde with the intention to sell these devices through external sales channels with a focus on the US, Europe, India and China.
The targeted customers include hospitals and clinics, where they are intended for use by anaesthesiologists, laparoscopic surgeons and emergency responders, among others.
"The directors of Tekcapital believe that Belluscura has the potential to achieve profitably in due course, as most of the development and regulatory costs of these devices have already been incurred," said Tekcapital.
Tekcapital does not intend to be involved in the day-to-day management of Belluscura or deviate from Tekcapital's existing business and strategy.
Tekcapital shares were up 3.9% to 45.70 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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