Safety Medical (ASX:SFP) will trade higher after it entered into a Heads of Agreement to acquire 3D Medical Limited.
The company is unlisted and is focussed on the commercialisation and integration of 3D printing and holographic projection technology into the Australian medical industry.
The application of these two technologies in the field of medicine has the potential to revolutionise patient treatment and care, by providing healthcare professionals with more meaningful information and greater insight into the complexities of patient anatomy.
SFP believes that the proposed acquisition of 3D Medical offers potential for significant increase in shareholder value over the medium to long term.
3D printing in the biotechnology field creates physical three-dimensional models of a patient’s anatomical parts utilising the images and data already captured by conventional diagnostic imaging tools.
The models are unique to the individual patient’s anatomy and can therefore act as a functional and visual aid in reviewing and understanding the complexities of a patient’s condition.
This is particularly relevant in complex pre-surgical planning and patient communication.
Holographic projection is the second launch technology platform for 3D Medical.
They believe that this technology will significantly alter the practice of medicine and will enhance efficacy and workflow at the practitioner level, accelerate and improve medical education and training and offer patients greater insight into their condition and ailment.
3D Medical seeks to establish first mover advantage in identifying and facilitating the take up and application of 3D printing and holographic technologies in the medical industry.
3D Medical expects its revenue streams to come from marketing its technical expertise in 3D printing and from the distribution of holographic projection viewers to radiology providers and medical specialists such as cardiology, neurology, gastroenterology and orthopaedics.
These areas of healthcare currently receive medical data only in 2D, even though it is captured in 3D.
Under the terms of the Agreement, Safety Medical, 3D Medical and the 3D Medical shareholders are to execute a Share Sale Agreement within 60 days.
The consideration for the acquisition is made up of $100,000 cash, 1,793,750,000 SFP shares, 500,000,000 Consideration Options exercisable at $0.003 and expiring 18 months after Completion; and 375,000,000 Consideration Options, exercisable at $0.004 and expiring 24 months after Completion.
The terms of the Agreement to acquire 3D Medical are subject to due diligence, regulatory approvals and final documentation.
Settlement of the purchase of 3D Medical may require the company to re-comply with Chapters 1 and 2 of the ASX Listing Rules, which can occur after shareholder approval has been received.
