Business
Proposed Acquisition of RUA Medical & Name Change
Proposed Acquisition of RUA Medical & Name Change.
About this update from Rua Life Sciences Plc
[{"type":"text","content":"\n \n \n RNS Number : 6862F\n AorTech International PLC\n 11 March 2020\n \n \n \n \n AorTech International PLC\n \n \n (\"AorTech\", the \"Company\" or the \"Group\")\n \n \n \n \n \n Proposed Acquisition of RUA Medical Devices Limited\n \n \n and\n \n \n Change of Name to RUA Life Sciences plc\n \n \n \n \n \n AorTech International PLC (AIM: AOR.L), the licensor of the world's leading long-term implantable biostable polymer (Elast-EonTM) and developer of medical devices utilising the key properties of Elast-EonTM\n , announces that it has entered into a conditional agreement with David Richmond, a Non-Executive Director of the Company, to acquire RUA Medical Devices Limited, an Ayrshire-based innovative and experienced implantable fabric specialist and full service contract medical device developer and manufacturer (\"Acquisition\") for a consideration of £2.45 million, which will be satisfied as to £0.95 million in cash and the balance by the allotment and issue of 1,500,000 new Ordinary Shares at £1 each, subject to, amongst other things, Shareholders' approval. \n \n \n \n \n \n Highlights\n \n \n \n \n \n ·\n Acquisition of a profitable, cash generative, full-service medical device developer and manufacturer that provides sub-contract manufacturing, assembly, packing and services to the medical device sector from its Class 7 and 8 cleanroom suites\n \n \n \n \n \n · \n Cash element of the consideration will be satisfied from the Company's existing resources\n \n \n \n \n \n ·\n The Consideration Shares are being issued at a price of £1.00 per share, a premium of 34.2 per cent. to the Closing Price on 10 March 2020\n \n \n \n \n \n · \n Vertical integration of the business, by providing the people, premises and processes necessary to convert the Elast-EonTM polymer into Elast-EonTM products\n \n \n \n \n \n ·\n The Acquisition effectively internalises the Company's manufacturing process, obtaining a large amount of manufacturing know-how and will be able to increase the gross margin potential of its patches and graft products\n \n \n \n \n \n · \n Shareholder approval is required for the Acquisition\n \n \n \n \n \n · \n Change of name to RUA Life Sciences plc\n \n \n \n \n \n ·\n Immediately following Completion, it is proposed that David Richmon...