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Contract Wins and Joint Ventures

BATM's Adaltis in China strategic JV

30 June 2016 07:53

BATM Advanced Communications' wholly-owned subsidiary Adaltis, a manufacturer of medical diagnostics equipment, has entered into an investment agreement and a strategic joint venture with its Chinese partner, Egens Biotechnology Co.

Egens will purchase RMB20m (approximately US$3m) of new shares in Adaltis, equivalent to approximately 5.5% of Adaltis's enlarged share capital, valuing Adaltis at approximately US$58m.

Egens has been granted an option to purchase a further 10%, which will be exercisable for 90 days after the approval of either Adaltis's 2016 or 2017 financial statements. The purchase price is expected to be based on a valuation of Adaltis at 5.5 times turnover.

Egens has deposited a non-refundable €200,000 with BATM to guarantee the execution of the deal within 90 days.

On the establishment of Adaltis Bio Med Company, a joint venture between Adaltis and Egens, in February 2014, Adaltis received a 40% interest in ABC with the balance of 60% interest held by Egens in consideration of its US$1m investment into ABC.

As part of this transaction, Egens is to make a further investment, by way of a shareholder loan, to ABC of US$1.5m. Following this investment, Adaltis' interest in ABC will remain at 40%.

ABC was established to provide Chinese customers with a multi-item imported diagnostic reagent product service for instruments and reagents.

BATM says ABC has signed its first major distribution agreement with Sino Pharm - a prominent Chinese medical and healthcare group - to distribute Adaltis HCV (Hepatitis C) nationwide. China is the world's largest market for Hepatitis.

BATM's diagnostics business is focused on developing compact, high accuracy, cost-effective products for small- to mid-size laboratories, including advanced genomic solutions that are being introduced to the market. In particular, the Group is targeting markets where many laboratories are mid-sized and dispersed in different localities - and hence require the solutions provided by the Group's diagnostics business.

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