- Advanced Human Imaging (AHI) is set to acquire digital health business wellteq through an all-share takeover, which it expects to complete in late November 2022
- Under the terms of the deal, wellteq shareholders will receive one AHI share for every six wellteq common shares held
- This will result in AHI issuing just under 18 million shares for full control of wellteq, and the move will give wellteq an interest of roughly 9.6 per cent in AHI
- The two companies have also entered into a loan agreement whereby AHI will lend wellteq $1.2 million
- Shares in AHI are down 24.5 per cent and trading at 18.5 cents as of 11:00 am AEST
Advanced Human Imaging (AHI) is set to acquire digital health business wellteq through an all-share takeover, which it expects to complete in late November 2022.
Under the terms of the deal, wellteq shareholders will receive one AHI share for every six wellteq common shares held.
This will see AHI issue roughly 17.8 million shares for full control of wellteq, and it will give wellteq an interest of roughly 9.57 per cent in AHI.
The two companies have also entered into a loan agreement under which AHI will lend wellteq $1.2 million. AHI said it would advance the loan in tranches not exceeding $200,000.
Upon completion of the acquisition, wellteq will nominate two of its directors to the AHI board. At this stage, wellteq’s nominee directors are CEO Scott Montgomery and Chairman Peter Vaughan.
Mr Montgomery is currently the proposed CEO of Advanced Human Imaging.
Shares in wellteq are currently listed on the Canadian Securities Exchange (CSE), trading under the code WTEQ.
As part of the acquisition, AHI will integrate wellteq’s complementary software assets in the health and wellness space into its own platform.
Shares in AHI were down 26.53 per cent and trading at 18 cents at 12:40 pm AEST.