Trendlines portfolio company in advanced talks to be acquired for US$16m

CATALIST-LISTED medical tech incubator Trendlines Group said on Friday that its 26.46 per cent-owned associated company ETView Medical could soon be acquired for some US$16 million.

Trendlines said that ETView, which manufactures airway visualisation products for medical professionals, has reported to the Tel Aviv Stock Exchange (TASE) that it is in an advanced stage of negotiations with an international company, with the intention to sign a definitive agreement "as soon as possible" to sell ETView to the international company.

The consideration for the proposed sale, which is currently under negotiations, will be US$16 million. This amount includes the assumption of certain debts and liabilities and expenses of ETView, transaction costs, and employee bonuses, all of which are estimated at about US$3.4 million, according to ETView's report to the TASE, Trendlines said.

Trendlines added that the proposed sale is based on a structure of a "reverse triangular merger", which will result in the delisting of ETView from TASE.

The fair value of Trendlines' holdings in ETView was about US$1.3 million as at March 31, 2016. Should the proposed sale be concluded, the group is expected to receive net proceeds of about US$3.3 million and a gain from the proposed sale of approximately US$2 million before tax, Trendlines added.

The Israel-based incubator was listed on the Catalist board of the Singapore Exchange in November 2015. Incubators make money when the startups or portfolio companies they take an equity stake in, exit via a trade sale or an initial public offering.