Beyond Medical Technologies Inc (CSE:DOCT) FRA:7FM2) has said it is set to buy telehealth group Kayan Health Limited in a share deal worth up to C$6million, allowing the company to deliver a one-stop solution to the medical industry with software and medical-grade PPE.
Kayan Health’s AI-powered platform has already been deployed in multiple clinics in the USA and is projected to reach US$5 million in revenue by 2022.
READ: Micron Waste Technologies to change name to Beyond Medical Technologies
Once the transaction is complete, Kayan Health will become a wholly-owned subsidiary of Beyond Medical.
"The name Beyond Medical reflects the transformation in the company’s strategic focus that took place in the past year to combat COVID-19 by manufacturing and distributing medical-grade personal protective equipment,” said Kal Malhi, chairman of Beyond Medical.
"The new corporate name reflects the company’s core business and enables future brands to integrate into one corporate identity. Kayan Health has demonstrated a unique telehealth platform that delivers critical solutions to the medical industry."
Ahmad Al-Hidiq, the CEO of Kayan Health, added: "Our partnership and union with Beyond Medical will allow us to access all the resources needed to fully invest into our suite of digital healthcare products towards the common goal - the democratization of healthcare."
Kayan Health’s proprietary platform allows patients to schedule virtual consultations with their physicians. It also integrates with wearable devices and diagnostic tools.
Prior to or concurrent to the closing of the deal, Beyond Medical will complete a non-brokered private placing of units at C$0.15 each for minimum gross proceeds of C$3million and a maximum of C$5 million.
Each unit consists of one share and one warrant. Each warrant will be exercisable to purchase one additional share for C$0.30 each for two years from closing.
For the acquisition, under the terms of the letter of intent, the total C$6 million in shares will be paid: C$4million on closing and C$2 million upon Kayan Health achieving a mutually agreed upon milestone.
The company will also provide Kayan Health with working capital of C$100,000 per month (to a maximum of $400,000) until the parties have executed a definitive agreement.
Effective on closing, Beyond Medical will also appoint two nominees of Kayan Health to its board of directors.
Beyond Medical is developing its Organivore and Pharmavore waste digesters using its proprietary technology. The firm, via subsidiary Micron Technologies, is also manufacturing medical-grade face masks compliant with ASTM F2100 Standards.
Contact the author at giles@proactiveinvestors.com