Singular Health secures $850,000 strategic investment from CG1 Ventures
Perth-based medical technology company Singular Health (ASX: SHG) has received commitments to raise a maximum $850,000 through a share placement with master distributor and US partner CG1 Ventures.
CG1 has committed to a strategic investment at $0.055 per share, which is a 41% premium to Singular’s last closing price of $0.039.
It is also the same price as the company’s most recent capital raise in May and will include one free attaching option for every two placement shares issued, priced at $0.10 each with a three-year expiry.
At the minimum investment of $500,000, the placement would total approximately 9.09 million shares and 4.54 million options, while the maximum $850,000 would increase the number of shares issued to 15.45 million with 7.72 million options.
Welcomed investment
Singular interim chief executive officer Denning Chong welcomed CG1’s investment.
“We are very pleased to welcome this strategic investment as we plant the flag in Florida and continue to grow our footprint in the US,” he said.
“These funds provide for additional capital and runway as we pursue larger-scale enterprise opportunities… it is a strong sign of confidence in our ability to achieve commercial contracts in the near future.”
Master US distributor
CG1 is the venture arm of Florida-based information technology firm Charlie Golf One Solutions.
In July, the company was appointed as the master US distributor for Singular Health’s 3Dicom medical imaging software which is designed for medical practitioners to view standard CT (computerised tomography), MRI (magnetic resonance imaging) and PET (positron emission tomography) scans in real-time 2D and 3D formats with built-in voice and text chat, as well as remote control functionality.
The software allows for the secure, wireless transfer of medical images across mobile, desktop and virtual reality (VR) applications to better facilitate patient education and collaboration.
FDA clearance
In October, 3Dicom received 510(k) clearance by the US Food and Drug Administration for diagnostic use in the region.
At the time, Singular said the clearance represented a “significant step” towards commercialising the product in the US, where the medical imaging software market is expected to be valued at $17.25 billion by 2030.
Proven record
CG1 has a proven record in commercialising software applications and has established a large network of partner organisations operating in US federal government and commercial sectors.
The company has previously developed, deployed, scaled and exited augmented reality (AR), VR and mobile applications in the defence and healthcare markets.
Singular Health has worked closely with CG1 and its partner organisations to develop a sales pipeline which includes several large-scale, long lead-time federal government projects and numerous short-to-medium term projects for large healthcare institutions in South Florida.