Medical technology company Singular Health Group Limited (ASX: SHG) has further strengthened its balance sheet through a significant follow-on investment of $773,000 in a $0.16 per share premium placement to US-firm Marin and Sons LLC.
This investment comes on the back of Marin & Sons’ substantial participation in the $850,000 placement by CG1 Ventures in November 2023 at $0.055 and is being made at a 39% premium to Singular Health’s last closing price of $0.115. This capital raising will be completed via a placement of 4,831,250 new fully paid ordinary shares at AUD$0.16 per share and is subject to shareholder approval, which will be sought immediately at a general meeting.
In an additional show of confidence, Marin & Sons has agreed to a variation of its services agreement as the company’s US Public Affairs and Corporate Advisor waiving their monthly retainer in lieu of receiving one million performance rights that are to vest upon Singular Health receiving a binding, unconditional contract of a minimum total contract value of US$1 million over 18 months, from a managed service organisation (MSO) in the United States. The issue of the performance rights is also subject to shareholder approval, and the performance rights and the capital raising shares will be subject to a 12-month escrow period.
“The introductions and in-country expertise provided by Steve Marin and his team has been instrumental in progressing Singular Health’s commercialisation in the United States,” Singular Health’s Managing Director, Denning Chong, said.
“This large financial investment, in addition to their already substantial financial investment recently, demonstrates significant confidence by Marin and Sons in the commercial prospects of Singular Health’s software and we look forward to advancing discussions with large healthcare groups in Florida and South-East USA.”
