Uscom Completes Private Placement to Management and Major Shareholders

SYDNEY, Australia, Monday 30th September 2019: Uscom Limited (ASX code: UCM) (the Company or Uscom) today announced the private placement of shares at an issue price of 10c per share to raise up to $1,050,000 as follows:

  1. A total of 4 million shares will be issued to Director of Uscom China, Ms Teresa Guo, and an unrelated current shareholder to raise $400,000. The issue of shares to Ms Guo and the current shareholder will be made under listing rule 7.1.
  2. A total of 3 million shares will be issued to the Uscom Executive Chairman, Prof Rob Phillips, to raise $300,000. The issue to Prof Phillips is conditional on shareholder approval which will be sought at a general meeting to be convened by the Company.
  3. Uscom has made an offer to another current shareholder, Mr Meng Xianhui, which permits him to subscribe up to $350,000 on or before 31 December 2019 at 10c per share.  The issue of shares to Mr Meng, if any, will be made under listing rule 7.1.

The issue price of 10c per share is a 9.1% discount to the prior monthly VWAP (11c, range 9.5c to 12.5c), and a 13% discount to the closing price on the date of offer (11.5c).

This growth capital will be used to build new USCOM 1A, BP+ and SpiroSonic devices following record manufacturing in June, and to support new marketing initiatives in China, Europe and the US, and to finalise the costs of China and US regulatory approvals.

The share issues, if all proceed, amount to nearly 7% of the Company’s listed equity. Following the issue of shares and outstanding performance rights, Uscom Executive Chairman Prof Rob Phillips and Mr Meng, a Beijing international investor, will each hold approximately 20% of Uscom’s issued equity.

Executive Chairman of Uscom, Associate Professor Rob Phillips said “Management and lead investors have recognised the investment opportunities with the continuing trend growth of Uscom fundamentals, combined with multiple impending international regulatory approvals. Our 2019 Annual Report cited a six-year compound sales growth of 29% per year, with a total sales growth for that period of 358% despite an increasingly difficult and unpredictable international commercial environment. The report also outlined strategies for sustaining this growth and our PP provides the capital to fund the manufacture of devices to support our new sales initiatives in China, Europe and the US. Management are concurrently implementing cost control initiatives targeting near term profitability. This PP investment by management and lead investors is an endorsement of the Company’s achievements and future growth strategy.”

The share placements come at the same time as the Company is in the process of consolidating small parcel shareholdings, which will commence on 21st October 2019, and is part of the Company’s broader capital rationalisation strategy.

Uscom manufactures and markets the USCOM 1A, the Uscom BP+, and the Uscom SpiroSonic digital ultrasonic spirometry technologies. These premium digital devices are changing the way we diagnose and treat cardiovascular and pulmonary diseases. The USCOM 1A provides vital guidance for optimising management of sepsis and the administration of fluid, inotropes and vasoactive therapies in critical care monitoring. The BP+ SpiroSonic devices improve diagnosis and management of hypertension, heart failure, asthma, COPD and sleep disorders in the clinical and home care environments.

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