- A Subiaco dentist trialling Singular Health Group’s (SHG) 3Dicom MD software-as-a-medical-device contributes half of an $800,000 convertible notes raise
- A substantial SHG shareholder funds the other half
- The company’s 3Dicom MD device is under the FDA 510(k) review process as it moves towards commercialisation in the US
- The company is now looking to appoint a US agent or distributor for the tech
- SHG shares were trading at 12 cents at 12:26 pm AEST
Singular Health Group (SHG) has raised $800,000 through convertible notes: half from a dentist in Subiaco, Dr Alex Yoong, who’s been testing the company’s software in his practice.
The other half was from substantial shareholder Cheong Chong Ling Diamond.
Singular Health Group’s 3Dicom MD Digital Imaging and Communication in Medicine (DICOM) viewer technology can generate and render patient-specific 3D models from existing 2D radiological images.
The company is awaiting US Food and Drug Administration 510(k) approvals for its diagnostic software. Chief Operating Officer James Hill said the initial review process generally took about 90 days and was the next step towards commercialisation in the US.
“Medical devices, especially when they’re used for diagnostics, require a high level of safety and efficacy,” Mr Hill said.
“For us, it’s been a big milestone that we have been working towards and adds a huge amount of value to our product offering.”
The convertible notes each have a face value of $10,000. Forty were issued to Ms Diamond and the other 40 to Dr Yoong’s Eryu Pty Ltd as trustee for the Eryu Superannuation Fund.
The convertible notes aren’t redeemable and can’t be converted until one year post issue. Annual interest of 15 per cent applies, and while there is no brokerage, arranger fees amounting to $48,000 will be payable to Ms Diamond and Dr Yoong. They will also receive options priced at 24 cents that mature in two years.
Mr Hill said the company raised the funds via convertible notes to minimise shareholder dilution.
“We’ve had great levels of support from the local investment community but have also seen more and more opportunities to collaborate with various medical practitioners and medical device companies both in Australia and overseas,” he said.
Earlier this month, Singular announced it was divesting its 50 per cent shareholding in mine planning software GeoVR. The deal with JV partner TerraCentric brings in $500,000, plus ongoing royalties/license fees.
SHG has a market cap above $13 million and shares were trading at 12 cents at 2:26 pm AEST.