Business
IDC Announces the Closing of Financing of Wholly-Owned Subsidiary
(via TheNewswire) Calgary, Alberta / TheNewswire / May 11, 2018 - Imaging Dynamics Compa...
About this update from Imaging Dynamics Company, Ltd.
[{"type":"text","content":"IDC Announces the Closing of Financing of Wholly-Owned Subsidiary(via TheNewswire)\n\n \nCalgary, Alberta / TheNewswire / May 11, 2018 - Imaging Dynamics Company Ltd. (\"IDC\" or the \"Company\") (TSXV:IDL) is pleased to announce that the financing of Wholly-Owned Subsidiary, IDC Shanghai, has closed (the \"Transaction\") effective May 2nd, 2018. IDC Shanghai entered into a financing arrangement with Beijing Sheng Zexin Technology Development Co (BSZ), Beijing Xiangyuda Technology Co. (BXT), and Shanghai FuLi Medical Technology Limited Partnership (\"FuLi\"). The financing arrangement will result in the following ownership structure: BSZ - 36.5%, BXT - 30.5%, FuLi - 13% and IDC 20%, pursuant to which BSZ, BXT and Fuli will subscribe for 36.5 million common shares (\"Shares\"), 30.5 million shares and 13 million shares, respectively, in the capital of the Subsidiary, at a price of 1 Renminbi (\"RMB\") per share, for gross proceeds of RMB 80 million (approximately CAD $16,091,108).\n\n\n \nFull Description of Material Change\n\n\n \nThe company expects that the Transaction may (a) allow the Subsidiary to improve market penetration in China, where relatively recent changes to government policies and regulations require state owned hospitals, which comprise more than 80% of medical devices market share in China, to purchase medical devices from locally owned or controlled companies; (b) may provide IDC with capital needed to explore strategic growth opportunities both in and outside of China, as well as provide the Subsidiary with the capital needed to support its Chinese operations in the near term; (c) may generally improve the financial situation of both the Subsidiary and the Company and may increase the Company's credit rating through the repayment of debt.\n\n\n \nProceeds from the Transaction will be used for the repayment of debt of the Subsidiary, research and development of new technology and products, and general corporate purposes of the Subsidiary. As a result of the Transaction, BSZ and BXT now hold 36.5% and 30.5%, respectively, of the issued and outstanding Shares of the Subsidiary. Both BSZ and BXT are arm's length parties. Pursuant to the terms of the Financing Agreements, it is expected that the composition of the Subsidiary's board of directors will change.\n\n\n \nImpact on the Company\n\n\n \nPrior to the closi...