Uscom announced it has secured a strategic investment from Mr Steven Meng, a private investor, and senior pharma executive for $1.755M in a placement of new shares.
Mr Meng is an experienced private and international value investor with investments across multiple sectors and countries, and has qualifications in economics, engineering management and business administration. Mr Meng has 10 years experience as a government departmental head (1987 to 1997), and 20 years experience in China pharma and medical devices, and remains the executive manager of a major Chinese Pharma, in which he was Executive Director from 2006 to 2017.
Mr Meng will bring both his international corporate and management skills to Uscom, including his excellent distribution contacts in China. Mr Meng has previously overseen a network of over 3,000 distributors with channels into over 10,000 Chinese hospitals across the 31 Chinese provinces, and access to his distribution network will enhance Uscom’s drive into China as seven new products are brought to market once CFDA is received during 2018. Uscom currently has approximately 50 distributors worldwide.
Uscom will issue 13 million new shares at $0.135 per share to Mr Meng, giving him a 10.3% initial stake in the company, at a 10% discount to the last closing price of $0.15. Uscom will use the funds raised in the placement to manufacture devices to fill outstanding orders and to build stock of the new BP+, complete global regulatory for all devices, and add clinical support and sales staff.
Mr Steven Meng said: “Uscom is an outstanding medical device company with a strong culture of product innovation, and I am looking forward to assisting it with growth in China. With the release of the new BP+ and SpiroSonic devices in 2018, distribution channels in China will become vital. Heart failure, hypertension, asthma and COPD are increasingly important diseases in China and success for Uscom is now dependent on the number and strength of distribution channels to deliver its products into China. I hope to grow these and help set the company on the path to strong growth in China.”
Executive Chairman of Uscom, Associate Professor Rob Phillips said: “Uscom is increasingly being recognised in the global medical devices domain, as this investment demonstrates. China is the driver of the world economy, and Mr Meng’s unique experience in Chinese channel management and corporate strategy are a perfect fit for Uscom as we ramp up our expanded sales and marketing activities in China. His long-term investment also supports the expansion of the company as it enters its next rapid growth phase. Preparing channels for the delivery of our seven new consumer products into China is a priority for us, and Mr Meng’s massive distribution network, contacts, and experience will significantly boost our strategic operations in China, and we welcome him to our register.”
The capital raising was facilitated by Sinonew Capital Advisory of Beijing.
The $1.755 constitutes part of the current capital raise which will close at end of business today (18th December 2017) with the full results released to market tomorrow following resumption of trading.