Enlitic Inc · ASX:ENL
Enlitic — Merger or Acquisition (September 2024)
45 slides from Enlitic's merger presentation, Sep 2, 2024
Slide 1: Proposed Acquisition and Capital Raising
Click to edit Master title style For personal use only Proposed Acquisition and Capital Raising September 2024 © 2024 Enlitic, Inc.
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER The following notice and disclaimer apply to this investor presentation (Presentation) and you are therefore advised to read this carefully before The information in this Presentation does not take into account the particular investment objectives, financial situation
Slide 3: Important Notice and Disclaimer (cont)
IMPORTANT NOTICE AND DISCLAIMER (cont) Future performance and forward-looking statements Any pro forma financial information does not purport to be in compliance with Article 11 of Regulation S-X of the Rules of the U.S. Securities and Exchange Commission and has not been prepared with a view toward
Slide 4: Important Notice and Disclaimer (cont)
IMPORTANT NOTICE AND DISCLAIMER (cont) Limitation on information relating to Laitek All information in this Presentation relating to Laitek, including in relation to historical performance and operations, historical costs, forecasts For personal use only concerning Laitek's calendar year 2024 financ
Slide 5: Introduction
For personal use only Introduction 5 © 2024 Enlitic, Inc.
Slide 6: Executive Summary
EXECUTIVE SUMMARY Enlitic announces raising of A$22.5 million (before costs) • Enlitic is a software development company that uses artificial intelligence to develop software products that manage medical imaging data in radiology (such as MRI, CT scans, X-ray and ultrasound Company and For personal
Slide 7: Strategic Priorities for Acquisitions
STRATEGIC PRIORITIES FOR ACQUISITIONS Laitek is considered a strong strategic fit and meets all of Enlitic’s expected outcomes when assessing potential acquisitions For personal use only 1 Increase commercialisation Increase penetration of our products with clients ✓ 2 Add complementary products Enh
Slide 8: Transaction Overview
TRANSACTION OVERVIEW The Proposed Acquisition of Laitek and Equity Raising For personal use only • Enlitic has entered into a binding agreement to acquire 100% of the shares in Laitek Inc. from various individual shareholders (Sellers) for a total consideration of US$4.95M (Proposed Acquisition), su
Slide 9: Overview of Enlitic
For personal use only Overview of Enlitic 9 © 2024 Enlitic, Inc.
Slide 10: Enlitic Update
ENLITIC UPDATE Significant progress in the last 12 months TCV2 Contracted ARR3 Client Wins Recent Contracts Entered Into For personal use only Clients Channel Partners 30 June 2023 $1.4M $0.4M 1 0 Up Up 257% 200% Current1 $5.0M $1.2M 11 6 NB: All values for remainder of the Presentation, unless othe
Slide 11: What We Do
WHAT WE DO The delivery of Ensight 2.0 lays the foundations for expanding capabilities ENLITIC CORE COMPETENCY For personal use only Illustrative Example STUDIES DATA Tangible Benefit Use Case Description Hanging Protocols Improve ENSIGHT 2.0 Radiologist Dictation template Puts time back in the hand
Slide 12: Necessity for Enlitic Use Cases
NECESSITY FOR ENLITIC USE CASES Ensight 2.0’s use cases has the potential to deliver significant value to our clients Improve Radiologist Productivity Improve and Enhance Data Quality For personal use only Enlitic estimates that a medium sized health 15% of extremity studies have unclear laterality,
Slide 13: Pipeline: Ensight 2.0
PIPELINE: ENSIGHT 2.0 We expect Ensight 2.0 to accelerate clients through the pipeline. Note: The below logos constitute only a select portion of Enlitic’s current pipeline. There is no guarantee that these opportunities will progress to End User Licence Agreements or generate any revenue for Enliti
Slide 14: Pipeline: Channel Partners
PIPELINE: CHANNEL PARTNERS Channel partners drive pipeline growth and are expected to shorten time to revenue Note: The below logos constitute only a select portion of Enlitic’s current pipeline. There is no guarantee that these opportunities will progress to End User Licence Agreements or generate
Slide 15: Proposed Acquisition of Laitek
For personal use only Proposed Acquisition of Laitek 15 © 2024 Enlitic, Inc.
Slide 16: Proposed Acquisition of Laitek
PROPOSED ACQUISITION OF LAITEK BUSINESS OVERVIEW PROPOSED ACQUISITION HIGHLIGHTS3 For personal use only • Enlitic has entered into an agreement to acquire Laitek for a total consideration of US$4.95M, with Total Consideration = US$4.95M US$4.0M to be paid via cash and the remaining US$0.95M to be pa
Slide 17: Tech Enabled Data Migration
TECH ENABLED DATA MIGRATION An essential component of the medical imaging ecosystem TECH ENABLED DATA MIGRATION For personal use only THE PREMISE IS SIMPLE THE REALITY: HIGHLY COMPLEX Many millions of studies encompassing petabytes of data are needed The process of extracting, translating and loadin
Slide 18: Strategic Rationale
STRATEGIC RATIONALE The Proposed Acquisition of Laitek is expected to deliver on Enlitic’s key objectives For personal use only • Combined capabilities and service offering provides clients the opportunity to standardize historical data Expected to increase the via access to Ensight 2.0 1 value of o
Slide 19: 1. Access to Data
1. ACCESS TO DATA The Proposed Acquisition of Laitek is expected to deliver a step change in Enlitic’s access to data Laitek has deep access to a wealth of data that Enlitic currently does not observe Access to further data gives Enlitic the foundation to build its value proposition For personal use
Slide 20: 2. Moving Critical Technology In House
2. MOVING CRITICAL TECHNOLOGY IN HOUSE Laitek’s technology stack is highly complementary SIGNIFICANT POTENTIAL TECHNOLOGICAL BENEFITS For personal use only Post Transaction Integrated service offering With Laitek, Enlitic will be a fully integrated data migrator offering an accompanying data standar
Slide 21: 3. Identification of High Value Sales Leads
3. IDENTIFICATION OF HIGH VALUE SALES LEADS The archived imaging market is large and growing GATHERING MOMENTUM GROWING MARKET SHARE For personal use only TOTAL SERVICEABLE MARKET • Laitek has significant capacity to migrate more studies 2020 2030 • The estimated number of archived images stored Org
Slide 22: 4. Master Services Agreement
4. Master Services Agreement Capitalising on the migration to cloud MASTER SERVICES AGREEMENT EXECUTION PLAN For personal use only • Laitek has recently entered into a Master Services Agreement (MSA) with a • Planning and execution meetings for the potential provision of data leading global PACS pro
Slide 23: 5. Attractive Potential Financial Outcomes
5. ATTRACTIVE POTENTIAL FINANCIAL OUTCOMES The Proposed Acquisition of Laitek is expected to deliver significant value to Enlitic securityholders1 EXPECTED SYNERGIES For personal use only Employee Duplication right sizing costs Cost ~US$1.0M Synergies The combined employee base will be right sized i
Slide 24: Enlitic + Laitek
ENLITIC + LAITEK The combined business expected to offer a fundamentally superior financial profile All numbers in USD TCV REVENUE PIPELINE For personal use only Current1 Estimated CY24 Pipeline Stage No. of contracts Total Contract Value Pending Progression4 43 $36.8M ENLITIC $5.0M2 $1.5-2.2M Open
Slide 25: Equity Raising
For personal use only Equity Raising 25 © 2024 Enlitic, Inc.
Slide 26: Equity Raising Overview
EQUITY RAISING OVERVIEW • Conditional Placement at A$0.05 per New CDI to raise A$22.5 million (before costs) subject to securityholder approval at an EGM expected to For personal use only be held in early October Conditional • Approximately 450,000,000 New CDIs to be issued under the Conditional Pla
Slide 27: Use of Funds
USE OF FUNDS Use of funds SOURCES1 COMMENTARY For personal use only Conditional Placement A$22.5M • Research and Development: Further development of Enlitic’s Total Sources A$22.5M core technology platform and technical integration with Laitek • Quality and Regulatory: Maintain quality certification
Slide 28: Indicative Timetable
INDICATIVE TIMETABLE This timetable is indicative only and remains subject to change at Enlitic’s discretion (subject to the ASX Listing Rules). Indicative Timetable Date For personal use only Signing of stock purchase agreement for the Proposed Acquisition Thursday, 29 August 2024 Announcement of P
Slide 29: Appendix A – Pro Forma Information
For personal use only Appendix A – Pro Forma Information 29 © 2024 Enlitic, Inc.
Slide 30: Pro Forma Profit and Loss Statement
PRO FORMA PROFIT AND LOSS STATEMENT 6 months ended 30 June 20241 USD $000’s Enlitic Laitek Total For personal use only Revenue 204 3,733 3,938 Expenses Employee benefits expense (4,690) (2,570) (7,260) Other operating expenses (2,783) (348) (3,131) Total Expenses (7,473) (2,918) (10,390) Other incom
Slide 31: Capital Structure
CAPITAL STRUCTURE Indicative capital structure of Enlitic post transaction Item A$22.5M For personal use only Current CDIs on issue 86,299,884 New CDIs proposed to be issued under the Scrip Consideration 28,744,3203 New CDIs proposed to be issued under the Conditional Placement1 450,000,000 Ordinary
Slide 32: Appendix B – Key Risks
For personal use only Appendix B – Key Risks 32 © 2024 Enlitic, Inc.
Slide 33: Key Risks
KEY RISKS This Appendix describes some of the key risks associated with an investment in Enlitic, together with risks associated with the Proposed Acquisition and Equity Raising. Enlitic is subject to a number of risks both specific to Enlitic’s business activities and of a general nature, which may
Slide 34: Key Risks: Equity Raising Risks
KEY RISKS Equity Raising Risks For personal use only ASX Quotation There is no guarantee that ASX will grant quotation of the New CDIs under the Conditional Placement and/or SPP. As disclosed in the Company’s Appendix 4C for the quarter ended 30 June 2024 (as released on 31 July 2024), the Company’s
Slide 35: Key Risks: Acquisition Risks
KEY RISKS Acquisition Risks For personal use only The Proposed Acquisition is conditional on a number of matters, including the Company raising not less than US$4,000,000 million under the Conditional Placement and, an amendment to the Company’s certificate of incorporation increasing the amount of
Slide 36: Key Risks: Acquisition Risks
KEY RISKS Acquisition Risks For personal use only Enlitic has undertaken financial, tax, legal, commercial, intellectual property rights, R&D and technical analysis of Laitek in order to determine its attractiveness to Enlitic and whether to proceed with the Proposed Acquisition taking into account
Slide 37: Key Risks: Risks Specific to Enlitic
KEY RISKS Risks Specific to Enlitic For personal use only There are many risks associated with the development of new technology, particularly in the health sector where regulatory and safety standards are paramount. While Enlitic already Approval of technology complies with the relevant regulatory
Slide 38: Key Risks: Risks Specific to Enlitic
KEY RISKS Risks Specific to Enlitic For personal use only Prospective investors should consider that an investment in Enlitic is highly speculative and should consult their professional advisors before deciding whether to apply for New CDIs Investment highly speculative pursuant to this Presentation
Slide 39: Key Risks: Risks Specific to Enlitic
KEY RISKS Risks Specific to Enlitic For personal use only There is a risk that Enlitic’s products could lose all or part of their commerciality. This could occur because of any one of several factors, including redundancy of products due to alternate products entering the market from a competitor or
Slide 40: Key Risks: Risks Specific to Enlitic
KEY RISKS Risks Specific to Enlitic For personal use only The protection of the intellectual property relied upon by Enlitic is critical to its business and commercial success. The value of many Enlitic products depends on granted patents, trademarks, and other intellectual property rights such as l
Slide 41: Key Risks: Risks Specific to Enlitic
KEY RISKS Risks Specific to Enlitic For personal use only Unforeseen expenditure Expenditure may need to be incurred that has not been foreseen by Enlitic, which may adversely affect the expenditure proposals of Enlitic and its proposed business plans. Enlitic may be subject to litigation and other
Slide 42: Key Risks: Risks Specific to Enlitic
KEY RISKS Risks Specific to Enlitic For personal use only There are a number of climate-related factors that may affect the operations and proposed activities of the Company, including the emergence of new or expanded regulations Climate risk associated with transitioning to a lower-carbon economy a
Slide 43: Key Risks: General Risks
KEY RISKS General Risks For personal use only Changes to the International Financial Reporting Standards (IFRS) are determined by the International Accounting Standards Board (IASB). The IASB may from time to time, introduce new or refined IFRS. It is also possible for interpretations of existing Au
Slide 44: Appendix C – International Offer Restrictions
For personal use only Appendix C – International Offer Restrictions 44 © 2024 Enlitic, Inc.
Slide 45: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS Hong Kong a) acknowledge that: (i) Part 3 of the FMC Act shall not apply in respect of the offer of CDIs to you, (ii) no product disclosure statement or other disclosure document under the FMC Act may be prepared in respect of the offer of CDIs and (iii) any informat