Tuesday, August 03, 2010
Stirling Products acquires controlling stake in TeleMedCare for A$7m
by Proactive Investors company news image
Pharmaceutical and Healthcare group, Stirling Products (ASX: STI), has acquired a 65% controlling interest in TeleMedCare Holdings Pty Limited, Australias most recognised brand in remote patient monitoring equipment and services.
TeleMedCare is currently operational in Australia and the UK and intends to expand operations in other countries. Distribution Agreements are in process of being finalised with interests in the UK and NZ.
Recently the past directors of TeleMedCare appointed an Administrator to the group in order to secure the continuity of the business.
Creditors of that company and a wholly owned subsidiary have approved Deeds of company Arrangement (DOCAs), which are expected to be formally finalised within the next several days, and they provide for Stirling to contribute a total $511,302 over the next 12 months as full settlement of the TeleMedCare group trade creditors.
Stirling will also provide a total $3 million in working capital over 18 months and allow for the repayment of shareholder loans of $3.66 million exclusively from future TeleMedCare profits.
Subject to profitability this distribution would be from 20% of profits in the first two years and 40% from thereon until repaid no interest is payable.
With Stirling controlling 65% of TeleMedCare, that company in turn will have an 80% interest in its UK subsidiary with the balance held by current UK shareholders.
The new TeleMedCare Holdings board now comprises Professor Branko Celler and Stirling representatives, Peter Boonen, John Diasinos and Gulshan Jugroo.
The TeleMedCare e-health solutions have been acknowledged by industry leaders such as Microsoft as leaders in their field of application and Microsoft has partnered with TeleMedCare in its supported e-health solutions. The company has received multiple awards and recognition globally.
Of the most recent, in 2009 TeleMedCare received the eHealth Award in the UK for Best use of Telehealth and TeleCare and in Australia just last month the company received a Design Award at the 2010 Australian International Design Awards from Standards Australia.
Currently TeleMedCare system products are approved by health authorities for use in Australia, New Zealand, the UK and the EU and approval in the US and Canada will be an immediate focus going forward.
TeleMedCare has tendered for significant government contracts and trials and the TeleMedCare products are also being trialled by a number of potential user bases.
Stirling Products is continuing to assesses the current sales opportunities as the integration of TeleMedCare operations into the company progresses and operations resume their expected global scale-up.
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