- Digital health company 1st Group (1ST) was up as much as 25 per cent on the market today after announcing it would be acquiring Visionflex
- Established in 2014, Visionflex designs, manufactures and distributes a range of clinical telehealth devices and software to ease remote clinical examinations
- This partnership will create an expanded customer footprint and new opportunities for both companies
- Upon completion of the acquisition, 1st Group will be undertaking a placement and non-renounceable entitlement offer to raise up to $3 million
- Shares in 1st Group have dipped slightly but are still up 16.7 per cent to trade at 1.4 cents
Digital health company 1st Group (1ST) was up as much as 25 per cent on the market today after announcing it would be acquiring Visionflex.
Established in 2014, Visionflex designs, manufactures and distributes a range of clinical telehealth devices and software to facilitate remote clinical examinations.
Its solutions are used by clinics across Australia, New Zealand, the UK, the US, India, Spain, Vietnam and the UAE.
This partnership will create an expanded customer footprint and new opportunities for both companies.
To acquire Visionflex, 1st Group will issue 484,020,008 shares to Visionflex shareholders who will hold roughly 57 per cent of 1st Group’s issued shares on completion.
“By combining 1st’s digital patient engagement and online appointment booking solutions with Visionflex’s video conferencing software and devices we are creating a world-class solution to deliver end to end clinical telehealth services to almost anyone, almost anywhere,” 1st Group Managing Director Klaus Bartosch said.
“The demand for telehealth has grown rapidly due to COVID-19 and has now become a permanent feature of healthcare systems globally. A report by McKinsey in July indicated that telehealth had grown by a whopping 38 times since pre-Covid-19 baselines.”
Upon completion of the acquisition, 1st Group will undertake a placement to Adcock Private Equity to the tune of $2.5 million. A total of 250 million shares will be issued priced at 0.01 cents.
1st Group will also launch a non-renounceable entitlement offer which will be capped at $500,000.
Additionally, Visionflex’s Co-Founder and CEO Mike Harman, as well as Adcock’s Founder Ben Adcock and CEO John Nantes will join 1st Group’s board.
Shares in 1st Group have dipped slightly but were still up 16.7 per cent to trade at 1.4 cents at 2:26 pm AEDT.